In a major relief to consumers ahead of the festive season, the government has announced fresh revisions to the Goods and Services Tax (GST) rates, effective from September 22, 2025. The changes impact a wide range of categories—from automobiles and electronics to daily essentials and fashion wear—prompting shoppers to rethink their purchase timings.
What to Buy After September 22
Many big-ticket items are set to become cheaper once the revised rates kick in. Consumers planning major purchases such as cars (small, mid-size, and luxury) or premium electronics like televisions and air conditioners are advised to wait, as all of these categories will see a GST rate cut.
Similarly, several daily-use products including hair oil, shampoo, coffee, ghee, butter, shaving cream, and dry fruits will be cheaper after September 22. Clothing in the ₹1,000–₹2,500 range will also see reduced taxation, making it worthwhile to postpone shopping for those segments.
Vehicles & Auto Components
Small cars (≤1,200 cc petrol / ≤1,500 cc diesel, ≤4 m long) and bikes ≤350 cc: GST down from 28% → 18%
High-value cars and bikes: Overall tax burden reduced due to removal of cess, though base GST remains high
Everyday Essentials
Hair oil, soap, shampoo, toothbrush, toothpaste, talcum powder, tableware, kitchenware, umbrellas, bicycles: 12–18% → 5%
Food & Bakery Staples
Bread (chapati, roti, paratha), paneer (pre-packed), UHT milk, noodles, chocolates, sauces, cornflakes, biscuits: cut to 5% or even GST-free
Footwear & Textiles
Footwear and basic apparel below ₹2,500: slashed to 5%
Healthcare & Medicines
Life-saving drugs, spectacles, diagnostic kits, oxygen, medical devices: now 5% or GST-free
Insurance Premiums
Individual life & health insurance: completely exempted
Electronics & Appliances
TVs, ACs, dishwashers: 28% → 18%
What to Buy Before September 22
On the flip side, some categories are set to get more expensive after the new rates take effect. Clothing priced above ₹2,500 will attract a higher GST rate—particularly relevant with the wedding and festive season around the corner. Those looking for premium ethnic wear or designer outfits may want to shop now.
Tickets for shopping events, concerts, and live shows are also slated for a tax hike, meaning buyers should secure passes in advance. In addition, caffeine-based beverages will become costlier under the revised regime, so stocking up before the change could save money.
Luxury Cars & Bikes
SUVs & big cars (>1,500 cc engines or >4 m length): taxed at 40%
Bikes >350 cc: GST 28% → 40%
Caffeinated & Packaged Beverages
Energy drinks, cola, soft drinks: now taxed at 40%
Entertainment & Gambling
IPL tickets priced above ₹500, casino entries, lotteries: 40% GST
Tobacco & Pan Masala
No change yet, but new 40% rate with cess likely in future rollouts
Bottom Line
The GST revision has created a split shopping calendar for Indian households. With essentials and mass-market goods set to get cheaper, many families are expected to delay purchases until after September 22. However, big festive spends—particularly on luxury clothing, event passes, and certain beverages—are best secured before the hike.
Consumers now have a clear roadmap for timing their purchases smartly, striking the right balance between savings and festive season needs.
