**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 set to roll out a significant reform starting Monday, 22 September 2025. The existing four-slab GST system will be replaced by a simplified two-tier structure aimed at streamlining taxation on goods sold across India.
### New Two-Tier GST Structure
Under the revamped system, goods will be taxed at either 5% or 18%, depending on their category. However, alongside these two slabs, a new special 40% tax slab is being introduced. This new slab replaces the mandatory Compensation Cess that was previously levied on certain products.
### Luxury Cars and Two-Wheelers to Become More Expensive
One of the most notable changes under GST 2.0 is the steep tax hike on ‘sin goods’ such as cigarettes and pan masala, which will now attract a heavy 40% tax rate.
Luxury vehicles are also affected. Cars with an internal combustion engine (ICE) capacity above 1,200cc and length exceeding four meters—including many SUVs and MPVs—that were earlier taxed at 28% GST plus a 22% Cess, will now be taxed at the new elevated 40% slab. Similarly, two-wheelers with engine capacities above 350cc will see a price increase due to this higher tax.
### Higher Tax on Beverages
Soft drinks and other non-alcoholic beverages like Coca-Cola, Pepsi, Mountain Dew, and Fanta will become costlier under the new GST regime. The tax rate on these aerated sugary drinks and carbonated fruit juices has been increased to 40% from the earlier 28%, impacting your everyday refreshment choices.
### Elevated Rates on Luxury Goods and Services
The new 18% GST slab will be applied to a range of luxury goods and premium services. This includes:
– Restaurant dining, especially at air-conditioned and upscale outlets
– Consumer durables such as refrigerators, washing machines, and air conditioners
– Beauty and grooming services offered at salons and spas
– Premium smartphones and imported gadgets
These changes mean that consumers will likely notice a price hike in these categories starting from September 22, 2025.
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In summary, GST 2.0 brings a streamlined tax structure but also introduces higher tax rates on luxury, sin goods, and premium services. Buyers of luxury cars, high-capacity two-wheelers, soft drinks, and premium consumer products should prepare for possible price increases under the new GST system.
https://www.newsbytesapp.com/news/business/gst-reform-these-items-will-attract-more-tax-from-tomorrow/story
