GST 2.0: Here is how to check and compare savings on products, post next-generation reforms

The Indian government has launched a new website called ‘savingwitgst.in’ to help consumers see how upcoming GST reforms will affect product prices. This website comes ahead of the next-generation Goods and Service Tax (GST) rollout on September 22.

The site, created by the government’s MyGov platform, allows people to compare prices of different items before and after the new tax rules take effect. It features categories like food, snacks, household items, electronics, kitchenware, and lifestyle products, making it easy to see how your favorite products’ prices will change.

How does it work?
Users can add products to a virtual shopping cart, then view prices under three different categories: the current price (including VAT), the base price, and the new price under the next-gen GST. This simple tool helps you quickly understand how much you can save or spend more on individual items.

For example, if you select milk from the food category, the price might appear as Rs 60 per litre (base price), Rs 63.6 with VAT, and Rs 60 with the new GST regime — showing a clear picture of tax reduction benefits.

What major changes are happening?
Earlier this week, the GST council approved a simpler two-tier tax system, reducing the old four slabs (5%, 12%, 18%, 28%) to just two main rates — 5% and 18%. An additional 40% tax will apply to luxury and sin goods.

Prime Minister Narendra Modi announced these reforms on Independence Day, promising that they will cut taxes on everyday essentials and packaged foods, providing direct savings to households.

What products will cost less?

• Basic items like milk (including UHT milk), paneer, Indian bread, soaps, shampoos, toothbrushes, toothpaste, tableware, and bicycles will now have zero GST.
• Packaged snacks like namkeens, bhujia, sauces, chocolates, coffee, and processed meats will see their GST drop from 12% or 18% down to just 5%.
• Consumer electronics such as TVs under 32 inches, air conditioners, and dishwashers will move from 28% to 18%.
• Small cars and two-wheelers below 350cc will also see GST reduced from 28% to 18%.
• Farming equipment like irrigation devices and farm machinery will have their GST cut from 12% to 5%.

What about more expensive or luxury items?
Tobacco products, pan masala, aerated drinks, and other luxury goods will continue to attract a high GST of 40%.

Overall, these GST changes aim to make everyday products more affordable while simplifying tax rates for businesses and consumers alike. The new ‘savingwitgst.in’ website is a handy tool to see how these reforms will put money back into the pockets of Indian consumers.