In its biggest push to rationalise India’s Goods and Services Tax (GST) structure, the Union government is considering moving several categories of goods and services into lower slabs. According to reports, the proposals will be taken up for discussion at the 55th GST Council meeting on September 3–4. If approved, many everyday essentials, food items, medicines, and consumer goods could soon become cheaper.

What may get cheaper under 5% GST

Agriculture and fertilisers

  • Fertiliser acids and bio-pesticides (from 18%/12%)

  • Sulphuric acid, nitric acid, ammonia

  • Drip irrigation systems, harvesting machinery

  • Tractors and tractor parts (tyres, engines, gearboxes, pumps, wheels, etc.)

Renewable energy

  • Solar cookers, water heaters and energy devices (from 12%)

Textiles and handicrafts

  • Synthetic yarns, sewing threads, carpets, gauze (from 12%)

  • Handicraft idols, terracotta kitchenware, bags, pouches, purses, antiques under 100 years

Apparel and footwear

  • Footwear priced below ₹2,500 (from 12%)

Education and stationery

  • Mathematical boxes, geometry boxes, colour boxes (from 12% to 5%)

Medical and health

  • Over 30 cancer drugs (from 12% to Nil)

  • Rare disease drugs (from 5% to Nil)

  • All medicines (from 12% to 5%)

  • Medical oxygen, bandages, surgical gloves, diagnostic kits (from 12% to 5%)

  • Thermometers, X-ray apparatus, spectacles, surgical & dental instruments (from 18% to 5%)

Food and beverages

  • Butter, ghee, dairy spreads (from 12% to 5%)

  • Dry nuts, condensed milk, sausages, jam, confectionery (from 12% to 5%)

  • Namkeen, bhujia, mixtures, tender coconut water (from 12% to 5%)

  • Cocoa butter, chocolates, corn flakes, cereals, pastries, biscuits, ice cream (from 18% to 5%)

  • Drinking water packed in 20-litre bottles (from 12% to 5%)

Consumer goods

  • Tooth powder, shampoos, soaps, toothpaste, hair oil (from 18% to 5%)

  • Utensils, sewing machines, bicycles, bamboo furniture, combs (from 12% to 5%)

  • Hand carts, rickshaws, handcrafted candles, contact lenses, pots, jars, bells, gongs

Defence

  • Walkie-talkies, tanks, armoured fighting vehicles (from 12% to 5%)

Paper and packaging

  • Wood pulp, cartons, boxes, paperboards (from 12% to 5%)

Items proposed to move from 28% to 18%

  • Cement

  • Fuel and lubricant pumps

  • Ambulance vehicles, 10+ seater transport vehicles

  • Petrol, LPG and CNG cars (engine ≤1200cc, length <4000mm)

  • Diesel cars (up to 1500cc, ≤4000mm length)

  • Motorcycles up to 350cc, three-wheelers

  • Auto parts and accessories

  • Consumer electronics like ACs, dishwashers, TVs

Why this matters

If approved, the revised slabs could reduce costs across sectors — from household groceries to medical treatments — while also providing relief to industries like automobiles and textiles.

Disclaimer: These are proposals only. The GST Council will take the final decision during its meeting on September 3–4.

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