From September 22, prices of 375 goods and services will decrease under India’s new GST framework. The GST Council reduced four tax slabs to just two: 5 per cent and 18 per cent. A special 40 per cent rate will apply to luxury and sin goods.
Finance Minister Nirmala Sitharaman described the reform as a “Diwali gift” for consumers. The move aims to lower costs for the middle class and simplify business operations. Daily food items, personal care products, electronics, medicines, and medical devices will see tax reductions.
In the services sector, GST cuts apply to gyms, yoga centres, salons, and barbers. Cement tax is reduced from 28 per cent to 18 per cent, benefiting homebuyers. Companies have been directed to revise MRPs and pass savings to consumers.
Brands have already responded. Hindustan Unilever lowered prices on Dove, Lifebuoy, Horlicks, and Kissan Jam. Amul cut prices on over 700 dairy products. Automakers like Maruti, Tata, and Hyundai announced price reductions on hatchbacks ranging from Rs 70,000 to Rs 1.3 lakh.
