GST Reform 2025: GST 2.0 will fill the pocket of common man, 42380 rupees will be saved every year, understand the complete math

GST Reform 2025: The Modi government has once again taken a big step to give relief to the pocket of the common man. After the income tax exemption in the budget, now important reforms have also been made in the field of GST. The long-running four-slab GST system has been simplified and changed into two main slabs. Earlier there were tax rates of 5%, 12%, 18% and 28%, but now most items will be charged only 5% or 18% GST. Apart from this, a special 40% slab has been kept only for sin goods (such as tobacco), luxury items and harmful products. What impact will this change have on the pockets of common families and how much will be saved, let us understand it with an example.

Rajesh, who lives in Delhi, works in a private company and his monthly salary is Rs 80,000. With this income, he runs the expenses of his family (wife and two children). Every month Rs 10,000 is spent on house rent, while Rs 20,000 is spent on household items and grocery. The good news is that in the new GST rules, the daily essential items have been shifted from 12% to 5% slab, which will directly benefit the common people.

Big relief in grocery shopping

Rajesh's family spends Rs 20,000 on grocery. Earlier, an average of 12% GST was levied on these items, that is, on a purchase of Rs 100, Rs 12 tax was added and the total became Rs 112. Now with 5% GST, the same item will be available for Rs 105, that is, a saving of Rs 7 per Rs 100. According to this, Rajesh will benefit by Rs 1,400. This saving can reach Rs 16,800 in a year. This will make the basic needs of the family easier.

Dinner at restaurants is now more affordable

With the new rules, GST on food and drinks at restaurants has been reduced from 18% to 5%. If Rajesh Khanna spends Rs 5,000 at a restaurant with his family, earlier Rs 900 was taxed, but now only Rs 250. That is, a saving of Rs 650. This amount can be saved up to Rs 7,800 in the whole year. This change will also give a boost to the restaurant business, which was suffering from recession due to expensive taxes.

Watching movies and enjoying popcorn is cheaper

With GST reform, tax on tickets up to Rs 100 in single-screen theaters has been reduced from 12% to 5% (with ITC). However, the 18% tax on tickets above Rs 100 and multiplexes like PVR will remain the same. Apart from this, the earlier complex tax system of three categories on popcorn has been simplified. Salted or labeled popcorn will now attract 5% GST, instead of the earlier 12%. If Rajesh spends Rs 2,000 on a movie with his family, there will be a monthly saving of Rs 140, i.e. Rs 1,680 annually.

Ease in travel and air travel

This change will also make holidays easier. GST on economy class flight tickets has been reduced from 12% to 5%, while on business class it has been reduced from 18% to 12%. If Rajesh spends Rs 50,000 on a trip with his family once a year, a saving of Rs 3,500 is possible. This will also boost the tourism sector.

Savings on purchase of clothes and shoes

Earlier there was 12% GST on clothes, which has now been reduced to 5%. If Rajesh buys clothes worth Rs 20,000 for the family every two months, then he will save Rs 1,400 per purchase, i.e. Rs 8,400 annually. Products up to Rs 2,500 for footwear will now come in the 5% slab, up from the earlier limit of Rs 1,000. This will make shopping easier without waiting for festivals.

Reduction in expenditure on medicines

Medicines were also given relief in the 56th GST Council meeting. Now GST has been made zero on mainly 5% and 18% slabs, as well as 33 life-saving drugs and cancer drugs. If Rajesh spends Rs 5,000 on family medicines, then there will be a monthly saving of Rs 350, i.e. Rs 4,200 annually.

If we add all these items, then a common family like Rajesh can save about Rs 42,380 annually. This change will not only strengthen the pocket of the common man, but will also give impetus to the economy. This step of the government is proving to be a true gift before Diwali.