Starting September 22, revised GST rates will apply across several categories. While some goods and services will become cheaper, others will cost more. Here’s a breakdown of what changes for consumers.
Clothing
Garments priced below ₹2,500 will continue to attract 5% GST. However, clothing items priced above that threshold will now fall under the 18% tax slab. This means premium brands such as Zara, Levi’s and Lacoste will see higher prices.
Luxury Cars
Luxury vehicles will now be taxed at 40%, up from the earlier 28%. At the same time, the additional cess of up to 22% has been removed. Earlier, this cess took the total tax burden to nearly 50%. With the cess gone, luxury cars including Mercedes and BMW models may actually cost less despite the higher slab rate.
Electronics
Appliances such as air conditioners will now attract 18% GST instead of 28%. Television sets larger than 32 inches also move to the 18% slab, making them cheaper. Smaller TVs already fall under the same rate and remain unchanged. Monitors, projectors and dishwashers also see a cut in GST.
Air Travel
Economy class air tickets remain under the 5% GST rate, with no change. However, business class, premium economy and first-class tickets will now be taxed at 18%, up from 12%. Passengers opting for non-economy travel will face higher fares.