This is the second festive season under India’s simplified GST structure, and the rate printed on your bill for a TV, a box of sweets or a silk kurta may be lower than what you remember from before September 2025. Since 22 September 2025, most goods fall into two main rates, 5 per cent and 18 per cent, with a special 40 per cent rate for a short list of luxury and “sin” goods. The old 12 and 28 per cent slabs were largely folded into these.
The changes were recommended at the 56th GST Council meeting in New Delhi and announced on 3 September 2025 in a PIB release. Below is what that means for typical Deepavali shopping in Chennai, from Ranganathan Street to Pondy Bazaar to online carts.
Electronics and appliances
The biggest cuts were on consumer durables that used to sit in the 28 per cent slab.
| Item | Earlier GST | From 22 Sep 2025 |
|---|---|---|
| Television sets, including above 32 inches | 28% | 18% |
| Monitors and projectors | 28% | 18% |
| Air conditioners | 28% | 18% |
| Dishwashers | 28% | 18% |
For items not listed here, such as refrigerators, washing machines, mobile phones and laptops, check the rate shown on the invoice and the CBIC rate schedule rather than relying on a shop’s verbal claim. Small cars and motorcycles up to 350 cc also moved from 28 to 18 per cent, which matters if you are timing a vehicle purchase for the festival.
Sweets, snacks and festive food
Packaged festive food got cheaper on paper. The Council moved several items to 5 per cent:
- Sugar confectionery, including boiled sweets, from 12 or 18 per cent to 5 per cent.
- Chocolates and cocoa preparations from 18 to 5 per cent.
- Pre-packaged namkeen, bhujia and mixture from 12 to 5 per cent, which covers the boxed mixture many Chennai families buy for guests.
- Biscuits, cakes and pastries from 18 to 5 per cent.
- Butter and ghee to 5 per cent, relevant if you make sweets at home.
Traditional sweets sold by sweet shops are a mixed picture. The PIB release does not create a single “mithai” category, and items such as gajak and chikki are listed as exclusions within confectionery. Sweets sold loose at a counter and those that are pre-packaged and labelled can be treated differently. Ask the shop what rate it charges and check the bill.
Clothes and footwear
For apparel, the dividing line is ₹2,500 per piece. This matters in Chennai, where festive buying often means silk saris and wedding wear.
| Item | Value | GST now |
|---|---|---|
| Readymade garments (knitted or woven) | Up to ₹2,500 per piece | 5% (unchanged) |
| Readymade garments | Above ₹2,500 per piece | 18% (was 12%) |
| Made-up textile articles | Up to ₹2,500 per set | 5% (unchanged) |
| Made-up textile articles | Above ₹2,500 per set | 18% (was 12%) |
| Footwear | Up to ₹2,500 per pair | 5% (was 12%) |
| Footwear | Above ₹2,500 per pair | 18% (unchanged) |
So a ₹2,000 kurta attracts 5 per cent, but a ₹3,000 one attracts 18 per cent. Higher-value garments now cost more in tax than before. Saris and fabric sold by the metre may be classified differently from readymade garments, so look at the invoice.
Gifts, pooja items and toys
Several items people buy for Navaratri golu, Deepavali gifting and pooja rooms moved to 5 per cent from 12 per cent: handicrafts such as wooden statuettes and carved stone art ware, idols made of wood, stone or base metal, candles, and toys including tricycles and dolls. Everyday items like soap, shampoo, toothpaste and kitchenware also dropped to 5 per cent, as did bicycles.
How to check you are getting the lower rate
- Ask for a GST invoice. It should show the taxable value and the CGST and SGST split, each half of the total rate.
- Compare the MRP with the pre-September 2025 price where you remember it; a shop cannot simply keep the old tax-inclusive price and pocket the cut.
- For clothes near ₹2,500, see whether the value is per piece.
- If a seller overcharges tax or refuses a bill, register a complaint with the National Consumer Helpline on 1915.
This is general information on tax rates, not tax or financial advice. Traders with specific classification questions should consult a GST practitioner.
Quick answers
When did the new GST rates start?
Most goods rate changes took effect on 22 September 2025.
What is the GST on a TV now?
18 per cent, down from 28 per cent, per the GST Council’s recommendations.
Is GST on clothes 5 per cent?
Only up to ₹2,500 per piece. Above that it is 18 per cent.
Are chocolates and namkeen cheaper?
Their GST fell to 5 per cent, though final prices depend on the seller.
Information checked against official sources on 18 October 2026. Fees, dates and rules can change; confirm on the linked official pages before acting.
