New GST Rates: These Items Will Become Costlier from September 22

Balasahana Suresh
The government’s new GST rate revisions, effective from September 22, 2025, are set to change how much you spend on several everyday and luxury items. While many essentials are becoming cheaper, some goods are moving to higher tax slabs — meaning your budget may feel the pinch. Here’s a complete breakdown.

🚨 1. Big Change – GST 2.0 Kicks In

From september 22, GST is simplified into two major slabs – 5% for essentials and 18% for most goods, with a special 40% slab for luxury and sin goods. This restructuring means some products will now cost more than before.

🥤 2. Aerated Drinks & Energy Beverages to Get Pricier

If you love soft drinks, flavoured water, or energy beverages, get ready to pay more. These have now been shifted to the 40% GST slab, making them significantly costlier.

🏍️ 3. High-End Bikes and Cars Under Luxury Tax

Motorcycles above 350cc, SUVs, and luxury cars (with bigger engines or longer wheelbase) will now attract 40% GST instead of 28%. Your dream superbike or premium car just got more expensive.

🚬 4. Tobacco & Pan masala Still Heavy on Pocket

Tobacco products, pan masala, gutkha, and cigarettes continue to be taxed heavily. While their cess structure remains, they will eventually move to the 40% slab, keeping them among the costliest items under GST.

🏭 5. Coal & Industrial Fuel to See Higher Costs

Coal, lignite, and related fuels are moving from 5% to 18% GST, which may lead to a rise in electricity generation costs and eventually affect household power bills.

🌿 6. Menthol & Derivatives Get Costlier

Menthol, peppermint oil, and related products — used in cosmetics, medicines, and FMCG goods — will now be taxed at 18%, meaning slightly higher prices for products containing these ingredients.

💡 7. Why This Matters to You

The hike in these categories will directly affect:

  • Household budgets (drinks, FMCG products)
  • Lifestyle choices (luxury vehicles, beverages)
  • Energy bills (due to coal price impact)
✅ Bottom Line

While daily staples like ghee, butter, and medicines are becoming cheaper, luxury and non-essential items are set to cost you more from september 22. Plan your big-ticket purchases wisely and adjust your monthly budget to absorb these new GST changes.

 

Disclaimer:

The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk.

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