New Delhi: From Monday, prices of a wide range of products—from kitchen essentials and electronics to medicines, medical devices, and automobiles—are set to fall as the reduced GST rates on around 375 items take effect.
The GST Council, comprising the Centre and states, has approved these tax cuts starting September 22, coinciding with the first day of Navaratri, offering a major relief to consumers.
Everyday items such as ghee, paneer, butter, snacks, ketchup, jam, dry fruits, coffee, and ice creams, along with aspirational goods like TVs, air conditioners, and washing machines, will become more affordable. Several FMCG companies have already announced price reductions following the GST rationalisation.
Medicines and medical devices like glucometers and diagnostic kits, now taxed at 5%, will be cheaper for the common man. Homebuyers will also benefit as GST on cement has dropped from 28% to 18%. The government has directed pharmacies to revise MRPs or pass on the savings from the GST cut.
Automobile buyers stand to gain the most, with GST rates slashed to 18% for small cars and 28% for larger vehicles. Many car manufacturers have already reduced prices accordingly.
Service sectors are also seeing relief. GST on beauty and wellness services—including health clubs, salons, barbers, fitness centres, and yoga—has fallen from 18% (with input tax credit) to 5% (without ITC). Daily-use items like hair oil, soaps, shampoos, toothbrushes, and toothpaste will also get cheaper as GST drops from 12-18% to 5%. Other personal care products, including talcum powder, face powder, shaving cream, and after-shave lotion, may see similar reductions.
From September 22, GST will move to a two-tier system: 5% and 18% for most goods and services, 40% on ultra-luxury items, while tobacco and related products remain in the 28% plus cess category.
Currently, GST is levied in four slabs—5%, 12%, 18%, and 28%—with additional compensation cess on luxury and demerit items. Finance Minister Nirmala Sitharaman said last week that these reforms could inject ₹2 lakh crore into the economy, leaving more disposable income with consumers.
Under the new structure, about 99% of items in the 12% GST slab will move to 5%, while 90% of items in the 28% slab will drop to 18%.
