Editor’s Note
The government has announced a reduction in GST rates, providing relief to consumers. Key items like household goods, restaurant meals, and children’s stationery are set to become more affordable.
The government has provided significant relief to the general public by reducing GST rates. Household goods, restaurant food, and children’s stationery will now be cheaper than before.
In a meeting of the GST Council, tax rates have been reduced on several products and services, which will slightly ease the burden on the common man’s pocket. The government’s aim is to control inflation and boost demand in the market. If you are thinking of buying any electronic item, planning to get stationery for children, or are in the process of building a house – this news could be beneficial for you. Now, domestic appliances like mixer grinders, washing machines, and microwave ovens may be available at lower prices. Previously, these attracted up to 28% GST, which has now been reduced to 18%. This could lead to a 5-10% drop in the prices of these products.
Now, when you buy items like soap, shampoo, toothpaste, and body wash from the market, you will also feel some relief. GST on these has been reduced from 18% to 12%, making these items more affordable.
There is good news for those who prefer eating out. Food at non-AC restaurants will now attract only 5% GST, whereas it was 12% before. This will provide some relief to those who dine out.
GST rates have also been reduced on notebooks, pens, pencils, sketch pens, erasers, etc. These educational items will now have lower tax, providing some relief to students and parents.
If you are planning to build a house, you may now save some money on cement, water pipes, tiles, etc. GST on these construction materials has been reduced to promote affordable housing.
The government believes that by rationalizing tax rates:
– Inflation can be controlled,
– Purchasing habits can be increased, and
– The middle class can be given relief.
This could accelerate economic activities in the market.
The new GST rates will be effective from October 1, 2025. Some products may have a different date, which will be confirmed soon through an official notification.
– Will companies actually reduce product rates, or will prices remain the same?
– The government is reducing GST, but if brands don’t reduce MRP, how much benefit will the public get?
– What impact will the GST rate cut have on the upcoming festive season?
– Could GST be reduced on other items in the near future?
This government step directly targets middle-class consumers, who are the most affected by inflation.
Small retailers and local shopkeepers hope that sales will improve.
Is this relief given to the public ahead of the upcoming budget?
Nevertheless, the reduction in GST rates will provide some relief to people in shopping, while also increasing demand in the market. If you have been postponing buying something, now is the right time — because that same item may now be available to you at a lower price than before.