October 01, 2025
- India has made changes in its taxes through the introduction of GST (Goods and Services Tax) 2.0. Under this new framework, a two-rate system has been introduced instead of the four slabs used earlier.
- As per GST 2.0, 5% tax is applicable on essential and daily-use products and services. This makes items such as butter, toothpaste and shampoos cheaper. It also applies to agricultural equipment, kitchenware and some other products.
- Tax for consumer electronics such as televisions and small cars and specific vehicles has been reduced to 18%.
- Further, individual life and health insurance are free of tax.
