The Goods and Services Tax (GST) Council has announced a major overhaul of its tax structure, slashing rates and simplifying the system into just two broad slabs: 5% and 18%. This change, which comes into effect on Monday, September 22, is poised to make a wide range of consumer goods more affordable, just in time for the festive season of Navratri.
In a move to pass on the benefits directly to consumers, many companies have already announced price reductions on their products. A separate 40% tax slab has been created for ‘sin goods’ to discourage their consumption.
Here is a detailed breakdown of what is set to get cheaper from September 22:
Appliances
Leading appliance manufacturers have been quick to announce price cuts. Major players like Voltas, Daikin, Godrej Appliances, Panasonic, and Haier have already released new price lists. The price of room air conditioners will see a reduction of up to ₹4,500, while dishwashers will become cheaper by up to ₹8,000. Companies are optimistic that these price drops will boost sales, with many expecting a double-digit increase during the festive season.
The reduction in dishwasher prices is particularly significant for this niche market, as it aims to make the product more accessible to urban consumers.
Dairy Products
Dairy giant Amul has announced a reduction in the retail prices of over 700 of its products. The Gujarat Cooperative Milk Marketing Federation (GCMMF), which owns the Amul brand, confirmed that the full benefit of the GST rate cuts will be passed on to consumers.
The new prices, effective September 22, will cover a wide range of products, including ghee, butter, ice cream, cheese, paneer, and chocolates. For example:
- Amul Butter (100 gm): Reduced from ₹62 to ₹58.
- Ghee: Cut by ₹40 to ₹610 per liter.
- Amul Processed Cheese Block (1 kg): Reduced by ₹30 to ₹545 per kg.
- Frozen Paneer (200 gm): Priced at ₹95, down from ₹99.
Packaged Water
The Ministry of Railways has also joined the list of entities reducing prices. The cost of its branded packaged drinking water, Rail Neer, will be reduced. A 1-liter bottle will now cost ₹14, down from ₹15, while a 500 ml bottle will be priced at ₹9, a reduction from ₹10. This revised pricing will also apply to other brands of packaged drinking water sold at railway stations and on trains. Commercial packaged water companies are also expected to follow suit.
Cars
Several car manufacturers, including Maruti and Jeep, have announced plans to pass on the GST benefits to their customers, leading to substantial price reductions.
The new rates, which come into effect on the first day of Navratri, are expected to provide a significant boost to consumer spending and economic activity across the country.