GST 2.0 in September 2026: New 5%, 18%, 40% Slabs & What Gets Cheaper

GST 2.0 in September 2026: New 5%, 18%, 40% Slabs & What Gets CheaperGST 2.0 simplified India tax to 5%, 18% and 40% slabs. See what got cheaper, what got costlier, and how prices change in September 2026.India's biggest tax reset in a decade is now on every bill. GST 2.0 collapsed the old four-slab maze into just 5%, 18% and 40% — essentials cheaper, luxury costlier. Here is what changes for your wallet in September 2026. The New 5%, 18%, 40% Slabs Slab Covers Old rate 5% Essentials, dairy, daily goods 12% earlier 18% Standard goods & services 28% earlier 40% Luxury, tobacco, sin goods 28% + cess earlier What Got Cheaper Butter, cheese, small appliances, entry-level cars, two-wheelers and many packaged foods dropped a slab — check the new shelf price with our GST calculator before you shop. What Got Costlier Luxury cars, cigarettes, pan masala and aerated drinks moved to 40% , the highest slab. Premium buyers feel the pinch while mass consumption gets relief. One nation, three slabs: relief for the middle class, premium on luxury. Price Impact in September 2026 A year after rollout (effective Sept 22, 2025), FMCG makers have passed cuts through, festive-season durables are priced on 18%, and businesses must keep e-invoices slab-correct. Planning a big buy? Run the EMI calculator on the new price first.FAQ

What are the new GST slabs under GST 2.0?

Three slabs only: 5% on essentials, 18% standard rate, and 40% on luxury/sin goods. The old 12% and 28% slabs were scrapped, effective September 22, 2025, with full price pass-through visible through 2026.

Which items got cheaper after GST 2.0?

Daily essentials, dairy, small appliances, entry cars and many consumer goods moved from 12%/28% down to 5%/18%, cutting shelf prices. Use our GST calculator to check exact savings.

What got costlier under GST 2.0?

Luxury cars, tobacco, aerated drinks and sin goods now face the 40% slab, making them costlier than before.

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