GST 2.0: What You’ll Save on Your Grocery Bill and More
Thank you for reading this post, don't forget to subscribe!Great news for your wallet! The next generation of GST reforms, dubbed GST 2.0, have just kicked in, and the government estimates you’ll be saving big on everything from groceries to cars.
Prime Minister Narendra Modi has called the reform “GST Bachat Utsav” (savings festival), and it’s set to create a “double bonanza” for households alongside the new income tax exemption. The government projects these changes will help Indian families save ₹2.5 lakh crore annually.
Here’s a breakdown of the estimated savings:
- Groceries & Essentials: Expect to save an estimated 13% on your regular household grocery bills.
- Cars: Buying a new small car? You could save around ₹70,000.
- Bikes & Scooters: You’ll save ₹8,000 on bikes/scooters up to 350 cc.
- Tractors: Farmers can look forward to a ₹40,000 saving on tractors up to 1800 cc, as the GST rate has been cut to just 5%.
- Electronics:
- Save ₹3,500 on a TV larger than 32 inches.
- Save ₹2,800 on a new air conditioner.
- Other Purchases:
- Stationery, clothing, footwear, and medicines will see savings of 7-12%.
- Health and life insurance policies are now exempt from GST, which could save you up to 18%.
The new GST system simplifies the previous four-slab structure into a two-tier system of 5% and 18% for most goods and services. This means that 99% of goods previously in the 12% slab are now taxed at 5%, while 90% of items from the 28% slab have moved to the 18% bracket. This massive rejig makes a total of 375 items cheaper, giving a much-needed financial break to the middle class and those with lower incomes.
