Patna: From Monday, Indians will see a notable drop in prices across a wide range of goods and services as the country implements major reforms to the Goods and Services Tax (GST). The changes, timed to coincide with the start of Navratri, have been hailed by the government as a “GST Savings Festival,” promising relief for households and businesses alike.
Under the revised GST regime, daily essentials such as soap, shampoo, diapers, toothpaste, biscuits, ghee, and cooking oil will now be taxed at lower rates. Fast-moving consumer goods companies have passed on the benefits directly to consumers, issuing new price lists effective September 22.
Healthcare costs will also fall. The GST rate on most medicines, medical equipment such as glucometers, and diagnostic kits has been cut to five percent. The government has directed pharmacies to adjust their prices to reflect the new rates, making healthcare more affordable for the public.
Television sets will become cheaper by Rs 2,500 to Rs 85,000, with GST on models over 32 inches now reduced to 18 percent. Other household appliances, including air conditioners and washing machines, will also see price reductions. Cement prices are set to decline as well, following a cut in GST from 28 percent to 18 percent, which is expected to lower overall construction costs.
The service sector is included in the reforms. Beauty and fitness services, including salons, gyms, barber shops, and yoga classes, will attract a tax of five percent without input tax credit. Hotel room rates up to Rs 7,500 will see reductions of up to Rs 525 under the new regime.
Automobiles, both cars and two-wheelers, will also become more affordable. Major manufacturers including Maruti Suzuki, Tata Motors, Toyota, and Hyundai are expected to lower prices, while luxury brands such as Mercedes-Benz and BMW will also pass on the tax cuts to consumers.
Prime Minister Narendra Modi described the reforms as a significant step towards “Atmanirbhar Bharat” (self-reliant India). Speaking on Sunday, PM Modi encouraged the public to promote indigenous products and celebrated the timing of the reforms with the festive season: “On the first day of Navratri, the country is going to take a significant and big step towards Atmanirbhar Bharat. This festive season will bring more joy to everyone.”
The GST Council had earlier this month decided to streamline the tax system, reducing four tax slabs to two: five and 18 percent, with a special 40 percent rate for luxury goods. These changes come into effect on September 22, excluding cigarettes, tobacco, and related products.
Analysts suggest the sweeping cuts are likely to boost consumption during the festive period, providing a timely stimulus for the economy.
