Big Relief: GST Slashed on TVs, Small Cars, Bikes, Cement & More from Sept 22

Middle-class items, including ACs, monitors, and three-wheelers, moved to 18% GST slab; pan masala and luxury items to attract 40%.

GST Council’s Big Reform — Only Three Slabs Remain

In a major reform to simplify the Goods and Services Tax (GST) structure, the GST Council today announced that from September 22, 2025, only three GST rates will remain — 5%, 18%, and a special 40%.

Finance Minister Nirmala Sitharaman, speaking in New Delhi, said the decision was made to ensure ease of living for citizens and ease of doing business for companies.

“These reforms have a multi-sectoral and multi-thematic focus,” her office posted on X (formerly Twitter).

GST rate reforms announced by the GST Council

What’s Getting Cheaper from September 22?

A large number of middle-class and essential items are now under the 18% slab, down from the previous 28%. This includes:

• Televisions

• Air Conditioners (ACs)

• Bikes under 350cc

• Cars under 1,200 cc (Petrol) and 1,500 cc (Diesel)

• Cement

• Three-wheelers

• Dishwashers, monitors, and projectors

This reduction is expected to make these items significantly more affordable ahead of the festive season.

Vehicle Type	Old GST	New GST	Effective Sept 22
Petrol cars (<1200cc, <4000mm)	28%	18%	✅
Diesel cars (<1500cc, <4000mm)	28%	18%	✅
Bikes (<350cc)	28%	18%	✅
EVs (All)	5%	No Change	✅
Cars >1200cc (petrol) / >1500cc (diesel), yachts, racing cars	28%	40% Special Rate	🔺

 Luxury & Harmful Goods at 40% Special GST

The special 40% GST rate will apply only to a small group of items considered luxury or harmful. These include:

• Pan masala

• Cigarettes

• Aerated water with added sugar

• Carbonated beverages

• Yachts & aircraft for personal use

• Motorcycles above 350cc

• Luxury & racing cars

This is aimed at discouraging harmful consumption while increasing revenue from high-end goods.

Impact on Common People & Industries

This move is expected to boost consumer demand, especially in the automobile, home appliance, and construction sectors.

Industries like cement manufacturing, TV and AC retail, and automobile dealers are likely to benefit from the new rate structure.