From Dining Out To Luxury Flights, Here's How Much You'll Save Or Spend

Planning a dinner out, a quick vacation, or even just stocking up your kitchen? The new GST rules change how you pay. While your restaurant bill and grocery basket are set to shrink, flying business class or owning a yacht will get expensive.

The GST Council, chaired by Finance Minister Nirmala Sitharaman, has cleared the biggest revamp since the tax was rolled out in 2017. Effective September 22, the existing four-slab structure (5%, 12%, 18%, 28%) is now reduced to two core slabs - 5% and 18% - with a steep 40% reserved for sin and super-luxury goods.

Dining Out Gets Cheaper

Eating out became more affordable. Restaurant meals that were earlier taxed at 12-18% will now attract a flat 5% GST. Restaurant owners, who had seen a dip in demand due to higher levies, expect a revival in footfall as customers return to dine-in experiences.

Hotel Stays Made Budget-Friendly

Travellers booking hotel rooms priced up to Rs 7,500 per night will benefit from a tax cut. GST has been slashed from 12% with input tax credit (ITC) to 5% without ITC.

Earlier, hotels could claim back part of their expenses through ITC, but that benefit is now gone.

This is expected to boost budget and mid-market stays, giving domestic tourism a push.

Luxury Flights And Yachts Get Pricier

Air travel will feel the GST reset in very different ways. Economy flyers will benefit, with tickets now attracting 5% GST.

Premium passengers face higher costs as business and first-class fares move up from 12% to 18%, a hike airlines are expected to pass on.

The steepest change hits the luxury segment. Private jets, helicopters, and yachts, earlier taxed at 28% plus cess, will now fall under a flat 40% GST slab. The removal of the cess mechanism also raises acquisition and import costs for charter operators and the ultra-wealthy.

Your Kitchen Basket Becomes Cheaper

Everyday groceries and cooking essentials are set to ease household budgets. UHT milk, paneer, pizza bread, rotis, khakhras, parathas, and parottas, once taxed at 5% or even 18%, will now fall into the zero-tax bracket.

Dairy items like butter, ghee, and cheese drop from 12% to 5%. Condensed milk, jams, sauces, pickles, and fruit juices will also get cheaper. Dry fruits and nuts such as almonds, cashews, pistachios, and dates move to the 5% slab from 12%. Sweet cravings too see relief, with biscuits, cakes, chocolates, cornflakes, soups, and even ice cream now taxed at just 5% instead of 18%.

Other Changes

Everyday items like soaps, shampoos, toothpaste, bicycles, utensils, and stationery will now be cheaper with 5% taxes. Big appliances such as ACs, dishwashers, and TVs will also see rates cut to 18% from 28%.

In healthcare, life-saving medicines, oxygen, and even health insurance policies will cost less or be tax-free.

Motorcycles under 350cc, small hybrid cars, and cement too move to lower slabs, while farmers benefit from reduced rates on tractors, fertilisers, and irrigation equipment.

Even services like gyms, salons, and yoga classes will now attract just 5% GST instead of 18%.