GST 2.0 starts from 22 Sept 2025

GST 2.0 starts 22 Sept

Here's all you need to know:

Quick summary

-> Two main slabs: 5% for essentials, 18% for most items

-> A 40% rate for luxury and sin goods

-> Health and life insurance premiums: 0% GST

-> Effective 22 Sept 2025

-Old vs new (at a glance)

-> Old GST: 0% • 5% • 12% • 18% • 28% (+ cess on de-merit goods)

-> New GST: 5% • 18% • 40% (luxury/sin) + 0% on insurance premiums

What this really means?

---

-Consumers

-> Bills get simpler to understand

-> Insurance at 0% GST lowers out-of-pocket cost

-> Watch-out: some insurers may tweak base premiums to offset lost input tax credit, so check renewal math

---

Sellers / SMBs

-> Cleaner pricing and invoicing with fewer slabs

-> Short-term friction: old-rate inventory, relabeling, ITC reconciliations

-> Government has allowed revised MRPs on existing stock and use of old packaging for a limited window, which eases the transition

---

Brands / companies

-> Fewer slab disputes, easier promo planning into the festive season

-> Rework price ladders, distributor terms, and ERP tax codes now

---

72-hour action list

1. Update ERP/POS tax codes, invoice templates, product pages

2. Reprice your top SKUs and pass visible savings where you can

3. Fix MRPs and shelf tags; add "Insurance: 0% GST" where relevant

4. Align logistics, returns, and credit notes for the switchover

5. Communicate the change in one clear line on bills and websites

✍🏻 Mantra Joshi

Spotted a wrong number or something out of date? Tell me and I'll fix it.