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Key Points

Starting tomorrow, 375 goods and services will become cheaper under the new GST framework. The tax structure has been simplified from four slabs to just two primary rates of 5% and 18%. Everyday items from food and medicines to electronics and cars will see significant price reductions. Major companies like Amul and Hindustan Unilever have already announced immediate price cuts for consumers.

Key Points: GST Rate Cuts Make 375 Items Cheaper From Tomorrow

  • GST structure simplified from four slabs to just two primary rates of 5% and 18%
  • Everyday essentials like food items, soaps, and medicines see immediate price reductions
  • Automobile sector benefits hugely with small cars dropping by ₹70,000 to ₹1.3 lakh
  • Major brands including Amul, HUL, and Maruti Suzuki announce immediate price cuts for consumers
3 min read

GST rate cuts: 375 items to get cheaper from tomorrow

GST slashed on 375 goods from food, medicines to cars and electronics. Major brands like Amul and HUL cutting prices immediately. Two-tax slab system begins September 22.

"This reform is not just about rationalising rates. It is also about ease of living and structural reforms. - Finance Minister Nirmala Sitharaman"

New Delhi, Sep 21

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

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Reader Comments

R
Rohit P
Great move! Was planning to buy a new car next month and the tax cut on hatchbacks is perfect timing. Saving over ₹70,000 makes a huge difference for middle-class buyers like me.
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Sarah B
Hope the companies actually pass on the full benefit to consumers. Sometimes these tax cuts don't translate to actual price reductions at the store level.
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Arjun K
The reduction in medicine prices is the most welcome change. Healthcare costs have been skyrocketing and this will help many families. Good decision by the government! 👍
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Michael C
Simplifying from four slabs to two makes so much sense. The previous GST structure was too complicated for small businesses. This should boost compliance and ease of doing business.
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Nisha Z
Amul reducing prices on 700 products is amazing! As a regular buyer of their dairy products, this will definitely help my household expenses. Hope other companies follow quickly.
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Vikram M
While I appreciate the tax cuts, I hope the government ensures proper implementation. The initial GST rollout had many teething problems. Hope this simplified version works better for everyone.

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