GST Rate Cut From Sept 22: Full List of Items Getting Cheaper – Cars, ACs, Medicines & More

Ahead of the rollout of the NextGen GST reforms, prices of hundreds of essential goods and services are set to fall, marking what Prime Minister Narendra Modi has called a "GST Bachat Utsav". The reforms take effect from Monday, September 22, and aim to simplify taxation while boosting savings for consumers.

"From tomorrow, only 5% and 18% GST slabs will apply," PM Modi said, announcing the launch of the next-generation GST reforms. He highlighted that daily essentials, medicines, personal care products, and even life and health insurance will see price reductions.

The reforms will affect a wide range of items, from kitchen staples to electronics and automobiles. Almost 99% of goods previously taxed at 12% will now fall under the 5% slab, while luxury and demerit goods will continue to be taxed at higher rates.

Key Highlights of the GST Rate Cut:

• Medicines: Tax reduced from 12% to 5%; additionally, 36 critical life-saving drugs for cancer, genetic, rare diseases, and cardiovascular conditions are fully exempted.
• Medical Devices & Diagnostic Kits: GST reduced to 5%.
• Mass Consumption & Aspirational Goods: Items like ghee, paneer, butter, namkeen, ketchup, jam, dry fruits, coffee, ice cream, TVs, ACs, and washing machines will see reduced prices.
• Cement: GST reduced from 28% to 18%.
• Cars: GST on big cars cut to 28%, and on small cars to 18%; several manufacturers have already announced price reductions.
• Home Appliances: Air conditioners and dishwashers will be cheaper.
• Health & Fitness Services: GST on salons, barbers, fitness centres, yoga classes slashed from 18% (with ITC) to 5% (without ITC).
• Personal Care Products: Hair oil, soap bars, shampoos, toothbrushes, toothpaste, talcum powder, face powder, shaving cream, and after-shave lotion tax cut to 5% from 12-18%.
• Packaged Water: Price of a 1-litre bottle of Rail Neer reduced from ₹15 to ₹14, and 500 ml from ₹10 to ₹9.

Amul Price Cuts:

The Gujarat Cooperative Milk Marketing Federation (GCMMF), which markets dairy products under the Amul brand, has reduced retail prices for over 700 product packs, including ghee, butter, ice cream, bakery, and frozen snacks, effective from September 22. This ensures that consumers directly benefit from the GST rate cuts.

With the new two-tier GST structure, most goods and services will now attract either 5% or 18% GST, while ultra-luxury items remain at 40% and tobacco products continue at 28% plus applicable cess.

The reforms are expected to significantly reduce consumer prices, simplify the tax structure, and provide direct savings to households across India.