NEW DELHI: In a landmark decision aimed at boosting consumer spending and easing household budgets, the Goods and Services Tax (GST) Council has announced sweeping tax rate cuts across a wide range of essential goods.
The major highlights of the revised GST structure include:
Hair oil, toilet soap bars, shampoos, toothbrushes, toothpaste, bicycles, tableware, kitchenware, and other household articles: GST reduced from 18%/12% to 5%.
Ultra-High Temperature (UHT) milk, prepackaged and labelled chena/paneer, and all varieties of Indian breads: GST cut from 5% to 0%, making them completely tax-free.
Luxury and sin goods: GST rate on several items slashed from 28% to 18%.
Finance Minister Nirmala Sitharaman, while announcing the decisions, said the rate cuts were guided by the twin objectives of supporting households and stimulating demand in the economy. “These changes will directly benefit consumers by lowering costs on everyday essentials while also boosting the FMCG, dairy, and retail sectors,” she said.
Industry experts hailed the move as a significant step to provide relief to consumers grappling with inflationary pressures. Economists also expect the tax cuts to encourage higher consumption and improve growth momentum ahead of the festive season.
The Council’s decision is expected to have a wide-reaching impact on manufacturers, retailers, and households, with FMCG companies likely to pass on the benefits to consumers through lower prices.
