GST Rate Cuts From Monday: Full List of Items Set to Get Cheaper

Prime Minister Narendra Modi on Sunday unveiled sweeping Goods and Services Tax (GST) reforms, calling it a “GST bachat utsav,” and announced that prices of hundreds of daily-use items will fall from September 22.

“With the rollout of next-generation GST reforms, only two slabs — 5% and 18% — will now apply to most goods and services,” Modi said in his address to the nation. Ultra-luxury goods will continue to attract a 40% levy, while tobacco and related products will remain in the 28% plus cess bracket.

The move simplifies the current four-tier GST system and slashes rates on a wide range of essentials and consumer goods. According to the government, almost 99% of items earlier taxed at 12% will now fall into the 5% bracket.

What Gets Cheaper From September 22

• Medicines: GST cut from 12% to 5%; 36 life-saving drugs for cancer, genetic and rare diseases, and cardiovascular conditions fully exempt.

• Medical devices & diagnostic kits: Down to 5%.

• Daily-use food items: Ghee, paneer, butter, dry fruits, namkeen, ketchup, jams, coffee, ice creams.

• Toiletries & personal care: Toothbrush, toothpaste, shampoos, soaps, hair oil — now taxed at 5% instead of 12–18%.

• Cosmetics & grooming: Talcum powder, shaving cream, after-shave lotions — down to 5% from 18%.

• Cement: Reduced to 18% from 28%.

• Automobiles: 28% on large cars, 18% on small cars; companies have already announced price cuts.

• Appliances: Air-conditioners, dishwashers, washing machines, televisions.

• Wellness & services: Health clubs, salons, yoga centres — reduced from 18% with ITC to 5% without credit.

• Packaged water: Rail Neer 1L bottle cut from ₹15 to ₹14; 500 ml reduced to ₹9.

Meanwhile, Amul announced price cuts across 700 product packs, including ghee, butter, ice cream, bakery and frozen snacks, to pass on the benefits of lower GST.

Union Finance Minister Nirmala Sitharaman said the reform would release about ₹2 lakh crore into the hands of consumers, boosting domestic demand. She stressed that the simplified GST will benefit middle-class families, the poor, and small businesses the most.