With the initiation of GST 2.0 in India, it has not only streamlined the tax filing but also impacted the way consumers are buying everyday products. One of the biggest wins for the buyers is that several consumer goods are now cheaper in price, especially when the purchases are being made through EMIs (Equated Monthly Instalments).
So whether it is a smartphone, a home appliance or even two-wheelers, the new regime is making even the durable goods more accessible and affordable. Let us explore more about the types of goods that have become cheaper, and how GST reforms impact EMIs and what it means for Indian households.
GST 2.0: What Changed for Consumer Goods?
Under the last GST 1.0, many consumer goods had attracted higher slabs and pricing, normally it would be 18% or 28%. Now, with the new age GST 2.0 commencing, the government has taken steps to reduce the tax rates on the products considered “as a necessity for the middle class.” This category includes a wide range of consumer durables and electronics that people frequently buy on EMIs.
In other easy words: Lower GST = Lower product cost = Lower EMI burden.
Consumer Goods GST Reduction: The Key Winners
Below are some of the categories where the new GST 2.0 new price list shows visible reductions:
| Product Category | GST Before (GST 1.0) | GST Now (GST 2.0) | Approx. Impact on EMIs |
| Smartphones | 18% | 12% | After the implementation of GST 2.0, the EMI is down by INR 150–50 per month on mid-range phones. |
| Refrigerators & Washing Machines | 28% | 18% | GST2.0 has put EMI down by INR 300–500 per month on popular models. |
| LED TVs (up to 42”) | 28% | 18% | GST 2.0 has put EMI down by INR 200–INR 400 per month. |
| Two-Wheelers (Bikes & Scooters) | 28% + cess | 18% flat | There have been some changes in the GST 2.0, where the EMI is now down by INR 400– INR 800 per month. |
| Furniture & Home Décor | 28% | 1 | THE GST on these items has reduced the EMI by INR 250–450 per month. |
Imp Note: The cost or rate of EMI depends on the loan amount, tenure and the bank interest rates. The numerics in the table are just for illustrative purposes.
Why the GST Impact on EMIs Is Important
- Affordability Boost: The middle-class households will now be able to plan purchases without overstretching their budget.
- Increased Access: The students and the young professionals can now afford the gadgets and vehicles at reduced EMI costs.
- Retail Growth: Now with a lower GST in place, there is an increase in demand among consumers in electronics, auto and furniture markets.
- Financial Inclusion: Now, more people may shift to EMI-based purchases as costs become manageable.
Example: How GST Reform EMIs Work in Practice
Let us take an example, suppose you are buying a mid-range smartphone worth INR 30,000 on EMI for 18 months.
- Before GST 2.0 (18%): Price = INR 30,000 + INR 5,400 tax = INR 35,400 → EMI to be paid is INR 4,425.
- After GST 2.0 (12%): Price = INR 30,000 + INR 3,600 tax = INR 33,600 → EMI to be paid is INR 1867.
Savings: Around INR 2558 per month, which totals to INR 30,696 over a year.
So when applied to bigger purchases like the two-wheelers or the refrigerators, the savings are even more significant.
GST 2.0 New Price List: Good News for Households
The GST effect on EMIs can be seen across the diverse range of goods, especially for those that fall under the “everyday essentials for a modern living” category. The government’s goal with these cuts is twofold:
- It helped in making the desired products like smartphones, TVs and bikes more accessible.
- There has been a boost in demand in industries like electronics and automobiles, which are the key to economic growth.
Borrower’s Tip: How to Maximise Benefits
So if you are planning to buy consumer goods in 2025, here is how you can benefit from the GST 2.0 reforms:
- Compare EMI Options: The banks and NBFCs might offer different EMI schemes; therefore, choose wisely according to your budget.
- Check Updated GST Rates: It is always advisable to check whether the product that you are going to buy has a reduced GST slab or not.
- Plan Big Purchases Now: With the GST cuts and slab changes in 2025, it has proven to be a good year to buy luxury items like bikes, refrigerators and TVs.
- Negotiate with Retailers: Some of the retailers also pass on additional discounts post-GST reduction, and they do not hesitate to ask.
Final Thoughts
The initiation of GST 2.0 has now turned out to be a win-win for both the consumers and the businesses operating in the FMCG industry. By making consumer goods cheaper and also reducing the GST impact on EMIs, the government has eased the financial pressure on middle-class families while also boosting the retail demand.
So, whether it is a GST 2.0 two-wheeler loan, a smartphone or a new refrigerator, the cheaper EMI burden makes it easier for Indian households to upgrade their lifestyle. If you are planning to purchase a bike, a TV or a smartphone in 2025, then this is the right time to check the GST 2.0 new price list and also take advantage of these savings.
