GST Impact on Middle Class: After the August 3 announcement, middle class families have come happiness. The Crend Sarkar has given a Diwali gift to the middle class by changing the GST rule. In such a situation, let us know how much benefit and savings will be saved by this new GST rule?
How much loss from GST 2.0?
According to Revenue Secretary Avinash Srivastava, the GST rate rationalization will cause a loss of about Rs 48 thousand crore to the central government.
GST New Rates 2025: Inflation for people had increased a lot since the arrival of GST. In everything, tax rate was fixed from 12 to 28 percent tax and more tax rate in some things. After the announcement of Prime Minister Narendra Modi’s August 15, the central government has recently given great relief to middle class families by cutting GST rates. This new GST rule will save direct savings in the middle class family pockets from everyday needs to insurance, health care, automobiles and electronics, due to reduced tax rate in every sector. Let’s know in detail what will be the effect at an average house and how much will be benefited.
Direct relief on food and essential
Earlier, 12–18% GST was used on everyday kitchen things like ghee, butter, jam, bread spreads, milk, yogurt, sauce and salty. Now it has been reduced to only 5% tax slab.
Buyers will have so much savings
- The average family will save about ₹ 300- ₹ 500 every month on purchasing these things.
- Dairy products (UHT milk, cheese, readymade bread) have been fully made GST free. Now people will not have to pay any kind of tax on buying these things.
- Dairy products are used in everyone’s homes, so it will save about ₹ 150 – ₹ 250 every month.
- Overall, now the average family will save ₹ 450-₹ 750 every month on eating and drinking and essential items.
Also read- New GST RATE LIST: From soap-shampoo to ghee-peak, these items used daily will be cheap
Personal care and utility items will be so advantage
- Basic products such as shampoo, toothpaste, hair oil had to pay 18% tax earlier on YouTensils used in the kitchen.
- Which has now reduced to just 5%.
- The family will now benefit from ₹ 150 – ₹ 300 every month on personal care.
Relief on health care and medicine
- GST has been reduced from 18% to 0–5% on the essential life-savings medicines and medical devices.
- Families who need medicines or medical every month, in such a situation, they will be able to save ₹ 50– ₹ 100 every month.
- Apart from this, the government has taxed 33 medicines, in such a situation, they will not have to pay any kind of tax to buy these 33 medicines.
Tax free on insurance
- Earlier life and health insurance premiums used to take 18% GST.
- Under the new GST rule, it is now completely tax-free.
- According to the policy size, now people can get relief of ₹ 400 – ₹ 800 annually.
Also read- GST Council Meeting: The country will get great relief on the first day of Navratri, know what will come in 5-18% slab
One time savings will be on electronic and vehicle
- GST has been reduced from 28% to 18% on purchasing large domestic machines like TV, AC, fridge, washing machines.
- On its purchase, now people will be able to save ₹ 2,000 – ₹ 4,000.
- GST rate has decreased by 10% on purchasing small cars and bikes.
- You will be able to save up to ₹ 10,000 – ₹ 15,000 at a time.
Understand how much saving will be in table form
| Category | Old GST | New GST | Monthly Savings (₹) |
| Food and Essential | 12–18% | 0–5% | 450–750 |
| Personal care | 18% | 5% | 150–300 |
| Health care | 18%/12% | 0–5% | 50–100 |
| Insurance | 18% | 0% | 400–800/year |