GST rate cuts: 375 items to get cheaper from tomorrow
From automobiles and electronics to food items and medicines, as many as 375 goods and services will become cheaper from Monday (September 22), as the new GST framework comes into effect.
IANS
Sep 21, 2025 02:18
0
New Delhi, Sep 21 (IANS) From automobiles and electronics to food items and medicines, as many as 375 goods and services will become cheaper from Monday (September 22), as the new GST framework comes into effect.
The major rate rationalisation, approved by the GST Council earlier this year, reduces the tax structure from four slabs to just two -- 5 per cent and 18 per cent.
A special 40 per cent rate will apply on a select list of luxury and sin goods.
Finance Minister Nirmala Sitharaman had described the reform as a “Diwali gift” for consumers, saying the move will not only lower costs for the middle class but also make business operations smoother under GST.
“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,” FM Sitharaman had said.
Everyday food items such as milk-based beverages, biscuits, butter, cereals, dry fruits, fruit juices, ghee, ice cream, jam, ketchup, namkeen, paneer, pastry, sausages, and tender coconut water will now attract lower GST.
Daily-use goods like 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 will become cheaper, while GST on several medicines and medical devices has been cut to 5 per cent.
The government has directed pharma companies to revise their 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, which is expected to make housing more affordable.
Big brands have already started passing on the benefits. Hindustan Unilever has announced cuts across products such as Dove shampoo, Lifebuoy soaps, Horlicks, and Kissan Jam.
Dairy giant Amul has reduced prices on over 700 products, including butter, ghee, paneer, cheese, ice creams and bakery items.
The Indian Railways has also cut prices of Rail Neer bottled water, with a 1-litre bottle now priced at Rs 14 instead of Rs 15.
The automobile sector will be one of the biggest beneficiaries, with small hatchbacks now taxed at 18 per cent instead of 28 per cent, and without any compensation cess.
Companies like Maruti Suzuki India, Tata Motors and Hyundai India have announced major price cuts on popular hatchbacks, ranging from Rs 70,000 to over Rs 1.3 lakh, effective from September 22.
--IANS
pk
