<h1>Two-tier GST (5% and 18%) for 375 items cuts prices, saving households ~13% on groceries, up to 18% on insurance</h1> A government-led overhaul of the goods and services tax introduced a two-tier structure (5% and 18%) and brings 375 items into lower brackets, with estimated household savings of about 13% on groceries and daily essentials and 7-12% on stationery, clothing, footwear and medicines; individual health and life insurance have been exempted, yielding up to 18% savings. Specific examples include roughly Rs 70,000 off small car purchases, Rs 40,000 off tractors up to 1,800 cc (rate cut from 12-18% to 5%), Rs 8,000 on bikes/scooters (up to 350 cc), and reduced GST on TVs, air conditioners and other goods.