Patna: India’s goods and services tax (GST) structure has been reduced to just two slabs—5% and 18%—in a move the Modi government has called a festival gift for the public. The new rates came into force nationwide on September 22, coinciding with the first day of Navratri.
Consumers were quick to respond. In Patna, shoppers crowded electronic stores where television prices dropped by around 10%. A set worth Rs.50,000 was suddenly selling for Rs.45,000. “I’d been waiting for the GST cut for weeks,” one customer said. “Combined with Navratri and Diwali offers, the savings are huge.”
The automobile market also recorded brisk sales. Bike prices fell by Rs.10,000–Rs.12,000, dealers said, predicting that shopkeepers who sold 100 bikes last season could now double sales. “Reduced GST is not just savings for customers, but a boost for production and the domestic market,” said a Patna showroom owner.
Traders in construction materials reported no fall in the prices of sand, bricks, or iron rods. A 100 cu feet load of sand continues to sell for Rs.3,500, while 1,000 bricks remain priced at Rs.10,000. Cement prices, by contrast, have dipped to Rs.350 a bag, down from Rs.400, largely due to seasonal rains rather than tax cuts.
For households, relief has also come through lower prices of Sudha dairy products. COMFED managing director Abhishek Ranjan confirmed that milk, ghee, and other staples were being sold at reduced prices following the GST change.
With Dhanteras and Diwali around the corner, the tax overhaul is expected to lift both household spirits and national consumption.
