The Government of India, giving a big gift to the common people, has announced the implementation of the new GST Reform from 22 September 2025. With this change, 0 GST (Zero GST) will be applicable on everything from food items to everyday needs and some health-related products. This will directly benefit the customers because now all these products and services will be cheaper than before.
In the GST Council Meeting held on 3 September 2025, significant changes were made to simplify the tax structure.
Now there will be only two GST slabs – 5% and 18%.
The slabs of 12% and 28% have been eliminated.
Most of the products with 12% have been shifted to 5% and 28% products have been shifted to 18% slabs.
The GST rate on select items has been reduced to 0% (Zero GST).
This decision will have the biggest impact on food, education materials, health sector and insurance services.
Items
Old GST
New GST (from September 22)
Paneer & Chhena (Pre-packaged & Labeled)
5%
0%
UHT Milk
Pizza Bread
Khakhra, Chapati or Roti
Paratha, Kulcha and Traditional Bread
Personal Health & Life Insurance
18%
33 Life-saving drugs
separately
Medical grade oxygen
12%
Sharpener, Crayon, Pastel
Copy, notebook, pencil, eraser
33 Zero GST on Life Saving Drugs: This will reduce the cost of patients in the treatment of critical diseases.
0% GST on Health & Life Insurance Premium: Now insurance policies will become cheaper than before.
Removal of tax on Medical Oxygen will benefit both hospitals and patients.
Food items will be cheaper – Everyday items like paneer, milk, bread and paratha will now be cheaper.
Education Support – Notebooks, pencils and stationery will be available for students without GST.
Healthcare Relief – Expenditure on essential medicines and oxygen will be reduced.
Financial Savings – Insurance premium will be reduced, which will directly benefit the middle class and salaried people.
The new GST Reform 2.0, which will come into effect from 22 September 2025, has brought great relief to the common people. The foodstuffs, stationery, and health sector products included in the Zero GST Items List will reduce everyday expenses. The Finance-Minister has clearly stated that it is necessary to reach every customer with the benefit of this change.
If you are thinking of shopping or taking health insurance, then after September 22, they will prove to be even more economical.
