Prices of daily essentials, food products, kitchen staples, electronics, medicines, medical equipment, and even automobiles will get cheaper from today as the reduced GST rates on about 375 items come into effect.
The new GST rates come into effect from today (September 22), a move that Prime Minister Narendra Modi said will accelerate India’s growth, as he highlighted the importance of making the country ‘atmanirbhar’. Under next-generation GST reforms, prices of several items and products, including electronics, food, and automobiles, have been reduced.
As part of the GST reform, the government has now introduced only two GST slabs—5% and 18%—instead of four. A separate 40% tax will be levied on ultra luxury items, while tobacco and related products will continue to be in the 28 per cent plus cess category. Till now, Goods and Services Tax (GST) was levied in 4 slabs of 5, 12, 18, and 28 per cent. Besides, a compensation cess is levied on luxury items and demerit or sin goods.
Direct relief to the middle class
Essential goods like food grains, medicines, and everyday items will continue to be taxed at a lower rate of 5%, ensuring affordability for families. Meanwhile, the removal of the 12% tax rate has made many mid-range products cheaper, providing direct relief to middle-class families.
Finance Minister Nirmala Sitharaman believes that the new GST reforms implemented by the government will significantly reduce the tax burden. It is estimated that this will result in savings of approximately Rs 2 lakh crore for the country’s citizens.
Food and beverages become cheaper
Now, everyday food items like milk-based beverages, biscuits, butter, cereals, dried fruits, fruit juices, ghee, ice cream, jam, ketchup, snacks, cheese, pastries, sausages, and coconut water will be taxed at a lower GST rate than before. This will reduce the common man’s kitchen expenses.
Daily use items like shampoo, soap, hair oil, shaving cream, talcum powder, and face cream will now be cheaper due to reduced taxes on them.
Reduction in the prices of electronic devices
Electronic items like ACs, washing machines, TVs, and dishwashers will also be available at affordable prices. The tax on these products has been reduced due to the new GST rates.
The government has reduced the GST rate on several essential medicines and medical devices to just 5%. Pharmaceutical companies have been directed to revise their MRPs (Maximum Retail Prices) and pass on the full benefit to consumers.
Salons, barbershops, gyms, fitness centers, and yoga services will now also be charged lower GST. This will ease the burden on those using these services.
Also Read: GST 2.0 to take effect from today: Full list of what gets cheaper
Also Read: ‘GST Bachat Utsav’ to benefit all sections: Top quotes from PM Modi’s address to nation
