**GST 2.0: These Items Will Cost More from September 22, 2025**
*By Akash Pandey | Sep 21, 2025, 07:48 PM*
The Goods and Services Tax (GST) Council, led by the Indian central government, is gearing up to implement a significant reform starting Monday, 22 September 2025. The existing four-slab GST structure will be replaced by a simplified two-tier system, aiming to streamline taxation on goods sold in India.
### New GST Structure: Simplified Two-Tier System
Under the revamped GST framework, goods will be taxed at either 5% or 18%, depending on their classification. However, there’s an important addition—a special 40% tax slab is being introduced. This new slab replaces the previously mandatory Compensation Cess applied to certain products.
### Luxury Cars and Two-Wheelers to Become More Expensive
One of the most notable changes is the hike in taxes on luxury automobiles and certain two-wheelers. ‘Sin goods’ like cigarettes and pan masala will be taxed at 40%. Likewise, luxury cars with internal combustion engine (ICE) capacity over 1,200cc and lengths exceeding four meters—including SUVs and MPVs—will now face a 40% tax.
Previously, these vehicles were taxed at 28% GST plus a 22% Compensation Cess on their ex-showroom price. In addition, two-wheelers above 350cc engine capacity will also fall under this higher tax bracket, resulting in a noticeable price increase for buyers.
### Soft Drinks and Beverages to Become Costlier
Consumers should also expect price hikes on soft drinks and other non-alcoholic beverages. Popular brands like Coca-Cola, Pepsi, Mountain Dew, and Fanta will now attract a 40% GST rate, up from the previous 28%. This slab covers aerated sugary drinks and carbonated fruit drinks containing fruit juice, making these everyday beverages more expensive.
### Luxury Goods and Premium Services to Attract Higher GST
The new GST regime will impose an 18% tax on various luxury goods and premium services. This includes:
– Restaurant dining, particularly at air-conditioned and upscale outlets
– Consumer durables such as refrigerators, washing machines, and air conditioners
– Beauty and grooming services at salons and spas
– Premium smartphones and imported gadgets
These items and services, which were earlier taxed at lower rates, will now carry an increased GST burden starting from 22 September.
—
With the implementation of GST 2.0, Indian consumers can expect price adjustments across several categories, especially in luxury and premium segments. Stay informed to better plan your purchases accordingly.
https://www.newsbytesapp.com/news/business/gst-reform-these-items-will-attract-more-tax-from-tomorrow/story
