Ginti India

GST 2.0 Price Calculator (Old vs New Rate)

Pick an item, enter what it cost with the old GST, and see the price under the new rate, with the tax taken out and put back.

Item

Price with the old GST (Rs.)

Rs.

Old GST (%)

Old compensation cess (%)

New GST (%)

New price

Rs. 6,40,310

Small car, petrol/CNG (up to 1,200 cc and 4 m): 28% + 1% cess → 18%

Saving: Rs. 59,690
Price before tax: Rs. 5,42,636
New GST: Rs. 97,674
CGST + SGST: Rs. 48,837 each

If the rate cut is passed on in full, Rs. 7,00,000 becomes Rs. 6,40,310: Rs. 59,690 or 8.53% less.

What you entered

Price: Rs. 7,00,000Old rate: 28% + 1% cessNew rate: 18%

1
Take out the old tax: 28% GST plus 1% compensation cess
Rs. 7,00,000 ÷ (1 + 29%)= Rs. 5,42,636 before tax
2
Add the new 18% GST (cess has ended)
Rs. 5,42,636 × 18%= Rs. 97,674
3
New price
Rs. 5,42,636 + Rs. 97,674= Rs. 6,40,310
4
Saving
Rs. 7,00,000 − Rs. 6,40,310= Rs. 59,690 (8.53%)
5
Within one state the new GST splits equally into CGST and SGST
Rs. 97,674 ÷ 2= Rs. 48,837 each

Result

New price: Rs. 6,40,310

The new rates apply from 22 September 2025, after the 56th GST Council moved to 5% and 18% slabs with a 40% rate for a few goods, and ended compensation cess (cigarettes, zarda, unmanufactured tobacco and beedi keep their old rates for now). Sellers set their own prices, so this is the price if the whole change reaches you.

How prices change under the GST rates from 22 September 2025

The change in a tax-inclusive price if the whole rate change is passed on: the old GST and cess are taken out, and the new GST is put back on the same price before tax.

Item	Old rate	New rate	Price change
Small car, petrol/CNG (up to 1,200 cc and 4 m)	28% + 1% cess	18%	-8.53%
Small car, diesel (up to 1,500 cc and 4 m)	28% + 3% cess	18%	-9.92%
Mid-size car (up to 1,500 cc, over 4 m)	28% + 17% cess	40%	-3.45%
Large car (over 1,500 cc)	28% + 20% cess	40%	-5.41%
SUV (over 1,500 cc and 4 m, 170 mm clearance)	28% + 22% cess	40%	-6.67%
Motorcycle up to 350 cc	28%	18%	-7.81%
Motorcycle over 350 cc	28% + 3% cess	40%	+6.87%
TV (LCD/LED, over 32 inches)	28%	18%	-7.81%
Air conditioner	28%	18%	-7.81%
Cement	28%	18%	-7.81%
Soap, shampoo, toothpaste	18%	5%	-11.02%
Packaged namkeen, bhujia, sauces, pasta	12%	5%	-6.25%
UHT milk, packaged paneer	5%	0%	-4.76%
Individual health or life insurance premium	18%	0%	-15.25%
Hotel room up to Rs. 7,500 a night	12%	5%	-6.25%

A cut from 28% to 18% lowers a price by 7.81%, not 10%, because the tax is a share of the price before tax: 118 / 128 = 0.9219. Cars that paid compensation cess on top of 28% gain more at the small end and less at the large end, where the new 40% nearly matches the old 45-50%. Motorcycles over 350 cc are the exception and get dearer. Sellers set their own prices, so these are the changes if the full cut reaches you.

Why you can't just subtract the rate difference

GST is charged on the price before tax, so the old tax has to be taken out first. A Rs. 6 lakh small petrol car carried 28% GST plus 1% compensation cess, so its price before tax was Rs. 6,00,000 / 1.29 = Rs. 4,65,116. At the new 18% that becomes Rs. 5,48,837, a fall of Rs. 51,163 or 8.53%, not the 11% the change in rates suggests. For an SUV that paid 28% plus 22% cess, the new 40% with no cess cuts a Rs. 10 lakh price by 6.67%.

What the 56th GST Council changed

From 22 September 2025 most goods pay 5% or 18%, with a 40% special rate for a few luxury and sin goods, and compensation cess has ended (cigarettes, zarda, unmanufactured tobacco and beedi keep their old rates until the cess loans are repaid). Small cars, motorcycles up to 350 cc, TVs over 32 inches, ACs, dishwashers, cement and auto parts went from 28% to 18%; soaps, shampoos, toothpaste, chocolates, namkeen, sauces, pasta and ice cream to 5%; individual health and life insurance premiums to nil. Bigger cars now pay 40% with no cess, slightly less than their old 45-50%; motorcycles over 350 cc pay 40%, up from 31%.

Frequently asked questions

How much cheaper is a car after the GST cut?

If the cut is passed on in full, a small petrol car (up to 1,200 cc and 4 m) falls by about 8.5%, from 28% + 1% cess to 18%, and a small diesel car (up to 1,500 cc and 4 m) by about 9.9%, from 28% + 3% cess to 18%. Bigger cars and SUVs move from 28% plus 17% to 22% cess to a flat 40%, so they fall by between 3.4% and 6.7%.

What are the new GST slabs?

5% and 18% for most goods and services, 40% for a few luxury and sin goods, and nil on exempt items, from 22 September 2025. The 12% and 28% slabs were removed. Within one state the tax splits equally into CGST and SGST.

Is GST on health insurance now zero?

Yes. Premiums for individual health insurance, including family floater and senior citizen policies, and individual life insurance are exempt from 22 September 2025. They were taxed at 18% before.

Does the seller have to pass on the GST cut?

The rates are set by law, but sellers set their own prices, so the saving shown is what you get if the whole change is passed on.