“Big GST Reform: Essentials Cheaper, Insurance Now Tax-Free”.

Major Simplification from September 22, 2025The GST Council, led by Finance Minister Nirmala Sitharaman, has overhauled the Goods and Services Tax (GST) rate structure, reducing it from four slabs (5%, 12%, 18%, 28%) to a simplified two-tier system of 5% and 18%, effective September 22, 2025.

In addition, a special 40% tax bracket will now apply to sin and super-luxury goods like cigarettes, tobacco products, paan masala, carbonated drinks, and high-end vehicles. Key Benefits for ConsumersEssential everyday items—such as toothpaste, shampoo, soaps, kitchenware, bicycles—will now come under the 5% slab, reducing financial burden on households. Ultra-essential goods like UHT milk, paneer, and Indian breads are now tax-exempt (0% GST).

A significant number of products previously taxed at 12% or 18%—including items like namkeen, sauces, chocolates, noodles, handicrafts, marble, fertilisers, life-saving drugs, medical equipment—move to the 5% slab. Goods that were taxed at 28%—such as ACs, TVs, dishwashers, small cars (up to 300 cc), motorcycles—are now taxed at 18%. Loans and insurance products see relief too: individual health and life insurance premiums are now GST-exempt (0%), down from 18%. Why This MattersThese changes collectively aim to boost consumer spending, ease cost of living for middle‑ and lower‑income households, and simplify compliance for businesses.

The simplified structure is expected to stimulate economic activity and possibly improve GDP growth, though it will reduce tax revenues—estimated losses vary from ₹47,700 crore to much larger figures in the billions.

Here are a few polished headline options around the GST reform update:“GST Overhaul: Council Simplifies Tax to Two Slabs, Eases Burden on Households”

“Big GST Reform: Essentials Cheaper, Insurance Now Tax-Free”“GST Revamp: Two-Slab Structure, Relief on Goods, Cars and Insurance”

“Historic GST Restructuring: Lower Taxes on Essentials, 0% on Health & Life Insurance”“GST Council Unveils Simplified Tax Regime to Boost Consumption”Do you want me to frame it in a newspaper-style headline (short & crisp) or a digital/social media style (catchy & engaging)?