GST 2.0: From Salon To Gym — Here's What Gets Cheaper For Urban Households From Sept. 22
However, food deliveries buck the trend. From Sept. 22, delivery charges on Zomato, Swiggy, Magicpin and others will draw 18% GST.
Urban households will see a shift in their monthly spending patterns when the new rates of the goods and services tax take effect on Sept. 22.
According to an analysis by the Federation of Indian Chambers of Commerce and Industry, and the Thought Arbitrage Research Institute, nearly 66% of the items urban Indians spend on will fall under the nil or 5% GST slabs, up from 50% currently.
At present, 32.3% of urban households spending is on items in the nil GST slab. Under the new structure, this will rise slightly to 32.9%. For the 5% GST slab, the jump is sharper: from 18.2% of monthly spending today to 33.3% after the changes. The 12% slab, which covers 10.8% of urban expenditure, will be scrapped entirely.
The 18% slab will shrink as well — from 16.9% of urban household spending to 14.1%, while items taxed at 28% or higher will fall to just 0.2% of urban household budgets, compared to 2.3% now.
So, What Gets Cheaper?
Everyday services get cheaper: A salon, spa, gym or yoga session will now attract just 5% GST without input tax credit, instead of 18% with ITC earlier. For consumers, this means a Rs 2,000 salon bill will carry Rs 100 in tax instead of Rs 360. Businesses, however, lose input tax credit benefits.
Essentials also turn cheaper, with urban households paying less for soaps, shampoos, shaving cream, toothpaste, toothbrushes, dental floss and face powders, all now under the 5% slab. Prescription spectacles drop from 12–18% to 5%, and bicycles and parts will also be taxed at 5% instead of 12%. Mouthwash, however, remains excluded.
However, food deliveries buck the trend. From Sept. 22, delivery charges on Zomato, Swiggy, Magicpin and others will draw 18% GST. Depending on the platform, that adds Rs 2–2.6 per order, a pinch for frequent users during the festive season.
For city families balancing monthly bills, the rejig means lower spends on personal care and essentials, cheaper everyday services, but a higher cost for convenience-driven food delivery.
