From automobiles and electronics to food items and medicines, as many as 375 goods and services will become cheaper from Monday as the new GST framework comes into effect.
The GST Council’s decision to rationalise the tax structure from four slabs to just two — 5 per cent and 18 per cent — marks one of the most sweeping reforms since the introduction of the indirect tax regime. A special 40 per cent rate will continue to apply on luxury and sin goods, including tobacco, pan masala, sugary beverages, luxury cars, and yachts.
Finance Minister Nirmala Sitharaman described the reform as a “Diwali gift” for consumers. “This reform is not just about rationalising rates. It is also about ease of living and structural reforms. We have reduced slabs to just two and addressed issues related to compensation cess,” she said.
What Gets Cheaper
Everyday food items such as milk-based beverages, biscuits, butter, cereals, dry fruits, fruit juices, ghee, ice cream, jam, ketchup, namkeen, paneer, pastries, sausages, and tender coconut water will now attract lower GST.
Daily-use goods including shampoos, soaps, hair oil, shaving cream, talcum powder, and face creams will also see price reductions.
Electronics such as ACs, washing machines, TVs, and dishwashers are set to become more affordable, while GST on several medicines and medical devices has been cut to 5 per cent. Pharma companies have been directed to revise MRPs and pass on the benefits to consumers.
In the services sector, GST has been reduced for salons, barbers, gyms, fitness centres, and yoga services.
For homebuyers, the tax on cement has been slashed from 28 per cent to 18 per cent, a move expected to bring down housing costs.
Industry Response
Leading FMCG brands have already announced price cuts. Hindustan Unilever has reduced prices on products like Dove shampoo, Lifebuoy soap, Horlicks, and Kissan jam. Dairy giant Amul has cut prices on over 700 items, including butter, ghee, paneer, cheese, ice creams, and bakery products.
The Indian Railways has also revised the price of its Rail Neer bottled water, reducing the 1-litre bottle from Rs 15 to Rs 14.
The automobile sector is expected to be one of the biggest beneficiaries. Small hatchbacks will now be taxed at 18 per cent instead of 28 per cent, without any compensation cess. Companies such as Maruti Suzuki India, Tata Motors, and Hyundai India have announced price reductions ranging from Rs 70,000 to Rs 1.3 lakh on popular hatchbacks, effective September 22.
-IANS