GST 2.0: What to Buy Now, What to Wait For

From electronics to tractors, many items will get cheaper after September 22 as GST rates are slashed

The GST Council has approved sweeping reforms that will reshape how everyday goods are taxed in India. Effective September 22, the 12% and 28% GST slabs will be abolished and replaced by two simplified rates of 5% and 18%. This means many products will become cheaper, while certain luxury and “sin” goods will get costlier under a new 40% tax bracket.

Here’s a guide on what’s best to buy now and what you should wait until September 22 to purchase.

Wait Until September 22 — Prices Will Drop

Electronics:
Air conditioners, LED and LCD TVs (above 32 inches), projectors, monitors, and dishwashers will move from the 28% to 18% slab.

Agricultural Equipment:
Fertilizers, tractor tyres and parts, and tractors will now fall under the 5% slab (down from 12–18%). The same applies to bio-pesticides, micronutrients, drip irrigation systems, sprinklers, and machines used for farming and harvesting.

Healthcare:
Thermometers, medical-grade oxygen, diagnostic kits, glucometers, test strips, corrective glasses, and health/life insurance premiums will now attract 5% GST instead of 12–18%.

Education Supplies:
Maps, globes, charts, pencils, crayons, sharpeners, erasers, books, and notebooks will be tax-free instead of being taxed at 12%.

Automobiles:
Small petrol and hybrid cars, along with LPG and CNG cars (engine capacity up to 1200cc), will now attract 18% GST instead of 28%.

Other Goods:
Renewable energy devices, toys, sports goods, leather items, handicrafts, wooden products, and construction materials will also see a shift to 5% GST.

Items That Will Become Costlier

Certain products will attract a steep 40% GST rate:

• Aerated and carbonated drinks, caffeinated beverages
• Luxury and super luxury cars (engines above 1200cc, length over 4000mm)
• Motorcycles above 350cc
• Yachts, racing cars, and aircraft for personal use

Sin Goods (Pan Masala, Gutkha, Cigarettes, Tobacco Products):
For now, these remain under the current GST and compensation cess system. The 40% GST will apply only once the government finishes repaying loans taken during the pandemic to cover revenue shortfalls.

The Bottom Line

If you’re planning to buy electronics, farm equipment, educational supplies, or cars in the small-to-mid segment waiting until after September 22 could save you a lot of money. But if you’re eyeing luxury cars, aerated drinks, or sin goods, brace yourself for higher prices ahead.