**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 implement a significant reform starting Monday, 22 September 2025. The existing four-slab GST structure will be replaced with a simplified two-tier system to streamline taxation across the country.
### New GST Structure: Two Tax Slabs
Under this new framework, goods sold in India will attract GST at either **5% or 18%**, depending on the product category. Additionally, a special **40% tax slab** will be introduced, replacing the earlier mandatory Compensation Cess levied on certain products.
### Luxury Cars and Two-Wheelers: Price Hikes Ahead
One of the major changes under GST 2.0 affects *luxury vehicles* and *high-end two-wheelers*.
– **Luxury cars** with internal combustion engines (ICE) over 1,200cc and length exceeding four meters — including SUVs and MPVs — will now face a hefty **40% tax**. Previously, these vehicles were subjected to a 28% GST rate plus a 22% Cess charge on the ex-showroom price. This change consolidates those levies into a single, steep rate.
– Similarly, **two-wheelers** with engine capacities above 350cc will also fall under this new 40% tax slab, leading to higher prices for premium bikes.
### Soft Drinks and Non-Alcoholic Beverages to Get Costlier
Soft drinks and other non-alcoholic beverages such as Coca-Cola, Pepsi, Mountain Dew, and Fanta will witness a price increase. The GST rate for these products has been raised from 28% to **40%**.
This category covers aerated sugary drinks and carbonated fruit drinks containing fruit juice, marking a significant tax hike on popular beverages.
### Luxury Goods and Premium Services to Attract Higher GST
The revamped GST system also impacts premium consumer durables and services:
– Restaurant dining, especially in air-conditioned and premium outlets, will now incur an **18% GST** rate.
– Consumer durables like refrigerators, washing machines, and air conditioners will also be taxed at 18%.
– Beauty and grooming services offered at salons and spas, along with premium smartphones and imported gadgets, will attract the higher 18% slab starting from September 22.
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These changes under GST 2.0 aim to simplify the tax structure but may lead to increased prices for luxury items, high-end vehicles, beverages, and premium services. Consumers should anticipate these adjustments as the new tax regime comes into effect next week.
https://www.newsbytesapp.com/news/business/gst-reform-these-items-will-attract-more-tax-from-tomorrow/story