Big GST cut brings relief to Varanasi residents and traders
In a major boost for Varanasi, Prime Minister Narendra Modi’s hometown, the government has slashed prices by reducing GST rates on many everyday items. This move has made both shopping and living easier for locals, traders say, and has sparked happiness all around.
Many traders and citizens believe this GST reduction will not only help consumers save money but also breathe new life into local markets. They appreciate how the government is responding to international trade pressures, especially challenges posed by the United States.
We spoke to a few people in Varanasi to learn their thoughts. Kaushal Pandey, a Chartered Accountant, said, “This is a big change. The government has introduced a two-tier GST system, making goods more affordable. It’s a positive step to counter global tariffs, especially US tariffs. Now, people can buy essentials at lower prices.”
Trader Sunil Upadhyay added, “This will help families in the lower and middle-income groups. The GST on packaged food items has been reduced to just 5 per cent, which is great news.”
Local resident Tulsi Kamalkant Joshi expressed his happiness, saying, “Prices have almost halved. This is a huge relief for ordinary people. It’s a big benefit for lower and middle classes.”
From September 22, many daily-use goods will become cheaper thanks to the new tax structure approved by India’s GST Council. The updated system now has only three main slabs: 5 per cent, 18 per cent, and 40 per cent for luxury and sin goods.
What does this mean for consumers? More money in their pockets! The government hopes that by reducing GST on essentials—from groceries to clothing and energy—people will spend more, boosting the economy.
Here’s what has become more affordable:
Food and Daily Essentials
- Milk and dairy: UHT milk is now tax-free; butter, ghee, and cheese see their rates drop from 12 per cent to 5 per cent.
- Packaged foods: Biscuits, chocolates, pasta, and cereals will cost less, falling from 12–18 per cent to 5 per cent.
- Nuts and dry fruits: Almonds, cashews, pistachios, and dates now attract only 5 per cent GST.
- Sugar and sweets: Sugar, candies, and toffees are now taxed at just 5 per cent.
- Cooking oils and spreads: These now come under the 5 per cent GST slab.
- Water: Bottled mineral water and aerated drinks without added sugar now attract 5 per cent GST.
Agriculture & Healthcare
- Fertilisers and seeds: GST has been cut to 5 per cent, helping farmers.
- Medical products: Life-saving drugs, medical devices, and health-related products will be taxed at 5 per cent or even be tax-free. Essentials like glucometers and thermometers now fall under the lower tax bracket.
Consumer Goods & Clothing
- Electrical appliances, footwear, and textiles: These items, previously taxed at 28 or 12 per cent, now attract just 5–18 per cent GST, making everyday products cheaper.
What remains the same or more expensive?
Certain goods will still face higher taxes—like tobacco products (gutkha, cigarettes), high-end alcohol, and luxury cars. Some of these, including imported luxury vehicles, will continue to attract higher GST or cess fees.
In summary, this GST reform aims to put more money into the hands of everyday people. With cheaper essentials, food, and clothing, residents of Varanasi—and across India—can look forward to a little more financial ease and improved shopping experiences.
This move is seen as a big step toward making life more affordable and supporting economic growth in India.
