GST 2.0 Comes into Effect from September 22: What Gets Cheaper and What Becomes Costlier in Mumbai
Mumbai is set to see noticeable price changes from September 22, as the revised Goods and Services Tax (GST 2.0) framework rolls out nationwide. The new system restructures multiple slabs into simplified categories, aiming to ease consumer spending on essentials while pushing luxury and sin goods into higher taxation brackets.
Under the revised scheme, most products and services will now fall under either 5% or 18% GST, while a new 40% slab has been introduced for items considered luxury or harmful to health.
Prices to Drop
Everyday essentials such as toothpaste, soaps, shampoos, biscuits, ghee, and condensed milk will now attract just 5% GST, down from 12%. Packaged snacks, dairy products, and affordable clothing and footwear are also set to become cheaper.
Electronics and home appliances like air conditioners, refrigerators, dishwashers, and televisions will move to the 18% bracket, making them significantly more affordable. Automobiles with smaller engine capacities and entry-level two-wheelers are also expected to see price reductions.
Healthcare costs will ease, with several medicines shifting from 12% to 5% GST, while life-saving drugs have been made completely tax-free. Corrective spectacles and health insurance premiums will also attract lower taxes.
Items to Get Costlier
The steepest hike comes in the new 40% slab, which includes aerated drinks, sugary sodas, and other carbonated beverages. Luxury automobiles, high-end motorcycles, imported watches, and premium personal services are also expected to rise in cost.
Consumer Advisory
Retail experts note that older stock may still carry pre-GST 2.0 pricing, as existing MRPs are valid until March 31, 2026. Consumers are advised to check billing carefully to ensure they are charged under the new rates.
With the festive season approaching, analysts predict that shoppers in Mumbai will benefit from lower costs on essentials and big-ticket items like appliances and small vehicles, though indulgence in luxury goods will now come at a premium.
