GST Tax Cuts: What You Need to Know
Thank you for reading this post, don't forget to subscribe!Good news for your wallet! As of September 22, 2025, the government has restructured the Goods and Services Tax (GST), making many everyday items more affordable.
Key Changes to GST Slabs
The old 12% and 28% tax rates have been eliminated, and most items have been moved into the lower 5% and 18% brackets. A new 40% rate has also been added for luxury and “sin” goods like tobacco and high-end cars.
- From 18% to 5%: Products like hair oil, shampoo, toothpaste, and soap now have a lower tax rate.
- From 12% to 5%: Dairy items such as butter, ghee, and cheese, along with pre-packaged snacks, are now cheaper.
This move is designed to make daily essentials more accessible for everyone.
Immediate Benefits for Consumers
FMCG (Fast-Moving Consumer Goods) companies are already passing these savings on to you. Major brands like Amul and ITC have started implementing new, reduced prices on their products. While it might take a few weeks for all products with the new prices to reach every store, you can start seeing the benefits right away.
Many companies are using media campaigns and QR codes to inform consumers about the new prices. For example, Dabur has already announced specific price cuts on popular products like amla hair oil and toothpaste.
So, as you shop for your household goods, keep an eye out for these new, lower prices and enjoy the savings.
