GST cuts to make ghee, healthcare, TVs more affordable for Navratri, Diwali

• TV prices to drop by Rs 2,500–85,000 as GST cuts take effect tomorrow; manufacturers anticipate buyers will upgrade to higher-end models.

• Healthcare becomes more affordable with the new GST rate effective from 22 September — benefiting the pharmaceutical industry, not just consumers.

• Room ACs see price reductions of up to Rs 4,700; dishwashers get cheaper by around Rs 8,000 from Monday, even as winter approaches.

A festive wind of relief seems set to sweep across India as the GST Council, comprising the Centre and the states, ushers in the ‘rationalisation’ of the goods and services tax (GST 2.0) from 22 September, Monday, coinciding with the first day of Navratri. This tax bonanza promises to make life sweeter for consumers, as prices of around 375 items — spanning daily essentials to aspirational goods — are set to dip.

From the humble kitchen to the luxurious living room, shoppers can expect appreciable relief. Staples like ghee, paneer, butter, namkeen, ketchup, jam, dry fruits, coffee and ice creams will become lighter on the wallet, while aspirational purchases such as televisions, air conditioners and washing machines will no longer pinch as much.

FMCG giants have already signalled price reductions in line with the GST rationalisation.

Healthcare, too, stands to gain: the tax on most medicines, formulations, and medical devices such as glucometers and diagnostic kits has been slashed to 5 per cent, promising significant savings for citizens. Pharmacies have been directed to adjust MRPs to reflect these tax cuts, bringing tangible benefits to patients across the country.

Though confusingly, the disabled — surely the more vulnerable population and per electioneering mantras a key vote bank — seem to have been left out of the loop...

Homebuyers are also expected to rejoice as GST on cement falls to 18 per cent from 28 per cent, reducing construction costs and easing the path for new homes.

The automotive sector emerges as a major beneficiary, with GST on vehicles now reduced to 18 per cent for small cars and 28 per cent for bigger models. Several carmakers have already rolled out revised, lower prices, making the dream of car ownership more attainable.

Also, despite the high 40 per cent slab declared for luxury and sin tax-attracting items, those who frequent beauty and wellness centres — health clubs, salons, barbers, fitness centres, yoga classes — will now enjoy a significantly lighter tax burden, with GST dropping from 18 per cent with input tax credit (ITC) to 5 per cent without ITC.

Daily-use personal care products — hair oils, soaps, shampoos, toothbrushes, toothpaste, talcum powders, face powders, shaving creams, and after-shave lotions — will also become more affordable.

From 22 September, the GST structure will embrace a ‘simplified’ two-tier system, with most goods and services falling under 5 per cent and 18 per cent slabs, while ultra-luxury items attract 40 per cent, and tobacco and related products remain in the 28 per cent plus cess category. Currently, the four-tier system spans 5, 12, 18 and 28 per cent, with luxury and demerit items drawing additional compensation cess.

Finance minister Nirmala Sitharaman has emphasised that these reforms are poised to infuse Rs 2 lakh crore into the economy, leaving more cash in the hands of consumers and stimulating spending. Nearly 99 per cent of goods currently taxed at 12 per cent will move to 5 per cent, and about 90 per cent of items in the 28 per cent slab will now attract 18 per cent GST, heralding a broad-based festive relief across the nation. But not everyone is convinced matters are quite this ‘simple’.

Certainly, all is not so hunky-dory — the spectre of loss of revenue still has states in a bind... disproportionately so in the South.

With PTI inputs