By News18,Satyaki Baidya

Copyright news18

In a major move to provide relief to consumers, the government has overhauled the GST structure, eliminating the 12% slab entirely and reducing the tax on many items from 18% to 5%.
Dairy products like ghee, butter, and cheese will now be taxed at just 5% GST. Similarly, biscuits, namkeen, cornflakes, and chocolate will see their GST rate reduced from 12% to 5%. Everyday products such as shampoo, soap, and toothpaste will also benefit from a reduction from 18% to 5%.
The impact of these changes is already evident in the market. Customers are experiencing direct savings on their purchases, and the business community is hailing this as historic relief for the public.
The Local 18 team visited Hitkari Departmental Store in Kirana Mandi and interviewed store owner Rishabh Hitkari, who detailed the benefits customers will receive from the revised GST rates.
A Big Win for Shoppers
Rishabh Hitkari emphasised that the decision will significantly benefit the general public, making many daily items more affordable. He highlighted that snacks, biscuits, Maggi, sauces, and jams, previously taxed at 12%, will now be available at just 5% GST, offering consumers a direct saving of up to 7%.
For instance, Maggi, previously priced at Rs 120, will now cost around Rs 110, while shampoo, previously Rs 375, will now be approximately Rs 335.
Additionally, numerous household products, including toiletries, soaps, shampoos, and personal care items, which were under the 18% slab, have now been moved to the 5% tax slab. This shift means consumers will enjoy discounts of up to 12% on these items.
Festive season staples such as almonds, pistachios, and desi ghee, which previously attracted 12% GST, will now be taxed at 5%.
Hitkari noted that this is the first time a government announcement’s impact has been so immediately visible in the market. Shopkeepers are pleased with the reduced GST, and customers are relieved as their household budgets have become lighter.
Shoppers Flock To Check Discounts On Various Items
Shoppers are inquiring about the discounts on various items, and many companies have already lowered their product prices. Brands like Colgate are now cheaper by 7-10%, and snacks and biscuits are also more affordable. For customer convenience, stores will display a list of all the reduced items.
Since September 20, customers have been visiting shops to learn about the new discounts, with many postponing major purchases until after September 22 to benefit from the GST changes.
Businesses believe this government decision is truly a relief for both the public and businesses, with both sectors expressing happiness as the market regains its vibrancy.
Deepti Mahendra, a customer purchasing household items, shared that the GST reforms have directly benefited consumers by making everyday items cheaper, thereby increasing monthly savings. She noted that household shopping, which was once a heavy burden, has become significantly more manageable due to reduced prices.
These savings are boosting both family budgets and businesses. Deepti expressed hope that the government will continue to make such beneficial decisions for the public. She also observed that shopkeepers are educating customers about the new GST rates, leading to greater awareness and increased shopping. This step is directly impacting household budgets and preventing unnecessary expenses, she said.