GST Rate Cut: 375 Products And Services Get Cheaper From September 22

Starting Monday, September 22, prices of 375 goods and services will drop as the new Goods and Services Tax (GST) structure comes into effect.

The revised framework, cleared by the GST Council earlier this year, reduces the number of tax slabs from four to just two: 5% and 18%.

A special 40% slab will remain applicable to a limited set of luxury and ‘sin’ goods.

Finance Minister Nirmala Sitharaman hailed the move as a ‘Diwali gift’ for citizens, highlighting that the reform not only benefits the middle class with lower prices but also simplifies compliance for businesses.

“This reform is about more than rationalising GST rates; it’s about ease of living and creating a stronger tax system. We have streamlined slabs and addressed long-pending issues related to compensation cess,” Sitharaman said.

What’s Cheaper Now?

1. Essential Groceries: Items including milk beverages, biscuits, butter, cereals, dried fruits, fruit juices, ghee, ice cream, jam, ketchup, snacks, paneer, pastries, and sausages will now be more affordable under the new tax regime.
2. Personal Care Products: Daily essentials, including bathing soaps, hair shampoos, shaving foams or creams, hair oils, talcum powders, and facial creams, will become more economical and affordable for consumers.
3. Electronics & Appliances: Major household gadgets and appliances such as washing machines, air conditioners, televisions, and dishwashers will witness a reduction in prices under the revised GST framework.
4. Medicines & medical devices: GST has been cut to 5%, with pharma companies instructed to revise MRPs and transfer savings to customers.
5. Services: Gyms, yoga centres, salons, barbers, and fitness facilities will charge lower rates.
6. Construction materials: Cement now falls under the 18% slab instead of 28%, reducing housing costs.

Brands Responding to Cuts

Consumer brands reduced MRPs: Hindustan Unilever slashed prices on Dove shampoo, Lifebuoy soaps, Horlicks, and Kissan Jam; Amul cut rates on 700+ products like butter, ghee, cheese, paneer, ice cream, and bakery goods. Rail Neer water now costs ₹14.

Automobile Sector Gains Big

The automobile industry stands to benefit the most. Hatchbacks that previously attracted 28% GST plus cess will now be taxed at 18% without cess.

Car makers such as Maruti Suzuki, Tata Motors, and Hyundai have announced price reductions of ₹70,000 to ₹1.3 lakh on popular models, effective immediately.

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