Outlook Business Desk
The revised GST rates take effect from September 22, 2025. The GST Council has approved a major rate restructuring, replacing the earlier four slabs of 5%, 12%, 18% and 28% with just two levels of 5% and 18%, along with a higher 40% slab for luxury and sin goods.
Finance Minister Nirmala Sitharaman described the GST changes as a Diwali gift for consumers. The reform aims to make essential household items, medicines, and services more affordable, while also simplifying taxation and easing business operations, ultimately reducing the financial burden on middle-class families.
More than 375 daily-use items will see lower prices under the new GST rate structure. Products such as biscuits, butter, cereals, paneer, shampoos, soaps, and hair oils are cheaper, while medical devices including glucometers and diagnostic kits now fall under the reduced 5% tax slab.
The GST cut brings relief across sectors. Medical devices now attract only 5% tax, reducing medicine costs. Rates for beauty and wellness services have been lowered, cement is down from 28 to 18%, and bigger SUVs face a flat 40% levy. Brands like Amul, HUL, L’Oréal and Himalaya have also announced immediate price reductions on their products.
FMCG giant Hindustan Unilever has rolled out price cuts on key products to pass on GST benefits. A Dove shampoo bottle now costs ₹435 instead of ₹490, a Lifebuoy soap pack ₹60 against ₹68, and a Horlicks jar ₹110, with revised MRPs effective until 31 December.
On the other hand , the cost of packaged drinking water has been revised under the new GST structure. A one-litre Rail Neer bottle will now retail at ₹14 instead of ₹15, while a 500 ml pack is priced at ₹9. The updated rates apply nationwide across trains and railway stations from September 22.
Several popular hatchbacks from Maruti Suzuki, Tata, and Hyundai are now more affordable due to the revised GST rates and removal of compensation cess. The Maruti Alto K10 sees a reduction of up to ₹107,600, Tata Altroz ₹110,000, and Hyundai i20 nearly ₹86,800 from September 22.
Dairy cooperative Amul, known for its wide range of milk and dairy products, has reduced prices on over 700 items. Ghee is now ₹610 per litre instead of ₹650, and 200 gm paneer packs are ₹95 instead of ₹99, passing GST benefits directly to consumers.
While numerous goods became more affordable, the GST on carbonated drinks, flavoured beverages, and high-end vehicles has increased to 40%. Sin products such as bidis, cigarettes, pan masala, and all forms of tobacco products, will also now carry a 40% GST.
The GST Savings will make everyday purchases more affordable, allowing citizens to save more. Reduced tax rates are expected to benefit a wide range of people, including the poor, middle-class families, youth, farmers, women, shopkeepers, business owners, and entrepreneurs across the country.