New Delhi, Sep 21 (NationPress) Starting Monday (September 22), consumers will benefit from lower prices on 375 goods and services ranging from automobiles and electronics to food products and medicines due to the implementation of the new GST framework.

The significant rate rationalisation, sanctioned by the GST Council this year, simplifies the tax structure by reducing it from four slabs to only two — 5 percent and 18 percent.

A special rate of 40 percent will be applied to certain luxury and sin items.

Finance Minister Nirmala Sitharaman termed this reform a “Diwali gift” for consumers, emphasizing that it will not only reduce expenses for the middle class but also streamline business operations under GST.

“This reform isn’t solely about rate rationalization; it’s also aimed at improving ease of living and instituting structural reforms. We’ve minimized the slabs to two and tackled issues concerning the compensation cess,” FM Sitharaman stated.

Common food items like milk-based drinks, biscuits, butter, cereals, dry fruits, fruit juices, ghee, ice cream, jams, ketchup, namkeen, paneer, pastries, sausages, and tender coconut water will now be subject to reduced GST.

Everyday products such as shampoos, soaps, hair oils, shaving creams, talcum powders, and face creams will also experience price drops.

In the electronics sector, items like ACs, washing machines, TVs, and dishwashers will see price reductions, while GST on numerous medicines and medical devices has been decreased to 5 percent.

The government has instructed pharmaceutical companies to adjust their MRPs accordingly to pass on these savings to consumers.

In the service industry, GST has been lowered for salons, barbershops, gyms, fitness centers, and yoga services.

For homebuyers, the tax on cement has been reduced from 28 percent to 18 percent, making housing more affordable.

Major brands are already implementing these changes. Hindustan Unilever has announced price drops on products like Dove shampoo, Lifebuoy soap, Horlicks, and Kissan Jam.

Dairy leader Amul has slashed prices on over 700 products, which include butter, ghee, paneer, cheese, ice creams, and bakery goods.

The Indian Railways has also reduced the cost of Rail Neer bottled water, with a 1-litre bottle now priced at Rs 14 instead of Rs 15.

The automotive industry will be one of the primary beneficiaries, with small hatchbacks now taxed at 18 percent instead of 28 percent and eliminating any compensation cess.

Companies like Maruti Suzuki India, Tata Motors, and Hyundai India have announced substantial price cuts on popular hatchbacks, ranging from Rs 70,000 to over Rs 1.3 lakh, effective September 22.