Starting Monday, September 22 — coinciding with the first day of Navaratri — prices of nearly 375 goods and services will come down as the new Goods and Services Tax (GST) rates take effect.
The GST Council, comprising the Centre and states, has slashed tax rates across categories, giving consumers a direct relief. Mass consumption items like ghee, paneer, butter, namkeen, ketchup, jams, dry fruits, coffee, ice creams, soaps, shampoos, toothpaste, and hair oils will now attract just 5% GST, down from 12–18%.
Aspirational and lifestyle products including TVs, ACs, washing machines, and automobiles are also set to become cheaper. Small cars will attract 18% GST while bigger cars will be taxed at 28%. Several auto companies have already announced price cuts.
In healthcare, GST on medicines, medical devices like glucometers, and diagnostic kits has been cut to 5%, easing costs for patients. Pharmacies have been directed to revise MRPs or sell medicines at lower prices to pass on the benefit. Cement, a key input for the real estate sector, will now attract 18% GST instead of 28%.
On the services front, GST on beauty, fitness and wellness services — including salons, health clubs, gyms, and yoga centres — has been reduced from 18% with input tax credit to 5% without credit. Personal care items like talcum powder, shaving cream, after-shave, and face powder will also get cheaper.
With this overhaul, GST will move to a simplified two-tier structure of 5% and 18% for most goods and services, while ultra-luxury items will attract 40% and tobacco products will continue in the 28% plus cess category.
According to Finance Minister Nirmala Sitharaman, the reforms will put an additional ₹2 lakh crore in consumers’ hands, boosting demand and supporting economic growth. Nearly 99% of items under the 12% slab have been moved to 5%, while 90% of products under the 28% slab will now be taxed at 18%.
