GST Rate Cut From September 22: 375 Items Get Cheaper — From Dairy to Cars, Electronics, and Medicines
GST Rate Cut From September 22: 375 Items Get Cheaper — From Dairy to Cars, Electronics, and Medicines
From tomorrow, September 22, consumers across India will see significant relief as the revised Goods and Services Tax (GST) rates come into effect. The GST Council’s major reform, which reduces four tax slabs to two, will make 375 essential items cheaper, including food, automobiles, electronics, medicines, and daily-use products.
GST Rate Rationalisation: What Changes
Union Finance Minister Nirmala Sitharaman confirmed that GST slabs have been streamlined to 5% and 18%, with a special 40% slab for luxury and sin goods. Terming the move as a “Diwali gift” to the middle class, she said the changes will simplify tax compliance while directly benefiting consumers.
Items That Will Cost Less From September 22
- Food & Dairy Products: Biscuits, butter, ghee, cheese, paneer, dry fruits, ice cream, fruit juices, namkeen, pastries, and jam.
- Daily-use Household Items: Shampoos, soaps, shaving creams, face creams, talcum powders, hair oils, and toothbrushes.
- Electronics & Appliances: ACs, TVs, washing machines, and dishwashers.
- Healthcare: GST on diagnostic kits and glucometers reduced to 5%, bringing down medicine and medical device costs. Pharmacies have been instructed to revise MRPs accordingly.
- Real Estate: GST on cement cut from 28% to 18%, expected to reduce housing costs.
- Automobiles: Hatchbacks, sedans, and SUVs to see massive price cuts. For example, Maruti Suzuki Alto K10 gets cheaper by ₹1.07 lakh, while Tata Altroz prices are reduced by ₹1.10 lakh.
Brands Announce Price Reductions
- Hindustan Unilever (HUL): Lifebuoy soap, Dove shampoo, Horlicks, and Kissan jam prices slashed.
- Amul: Over 700 items including butter, ghee, cheese, paneer, and ice cream will see lower prices.
- Rail Neer: A 1-litre bottle now at ₹14 (earlier ₹15), 500 ml at ₹9 (earlier ₹10).
What Gets Costlier Under GST 2.0
Not all products will see price drops. The 40% GST rate will apply to:
- Carbonated beverages like Coca-Cola and Pepsi.
- Luxury cars, SUVs above 1,200 cc (petrol) and 1,500 cc (diesel), motorcycles above 350 cc.
- Yachts, private aircraft, racing cars.
- Sin goods including cigarettes, pan masala, and tobacco products.
The government has directed all manufacturers to revise MRPs by December 31, 2025 to reflect the reduced tax impact.
