Union Minister Pralhad Joshi cheered the latest GST reforms on Monday, calling the nationwide Bachat Utsav celebration India’s biggest tax overhaul in 75 years. Speaking in New Delhi, Joshi highlighted how these changes make everyday items more affordable for families across the country.
The new GST structure simplifies things by merging the old four tax slabs into two key rates: 5 percent and 18 percent. Items previously taxed at 12 percent now fall under the 5 percent slab, while those in the 28 percent category drop to 18 percent. Essential goods and daily essentials get the lowest 5 percent rate, helping keep household costs down. Luxury and sin goods stay at a separate 40 percent slab.
“This is the biggest reform in the country in 75 years,” Joshi told reporters. As Consumer Affairs Minister, he stressed that retailers must pass on the full savings to shoppers. To ensure that happens, the government launched a helpline for complaints.
The GST Council approved these updates at its 56th meeting earlier this month, and they kick in today, September 22. Experts say the streamlined GST rates will cut red tape, lower consumer prices, and spark growth in sectors like manufacturing, agriculture, automobiles, FMCG, and renewable energy. It should also boost small businesses (MSMEs), expand the tax base, and promote fairer economic progress.
In the FMCG and dairy world, big players are already slashing prices. Amul and Mother Dairy announced cuts that show the GST benefits reaching customers. For example, a 100-gram pack of Amul butter now costs Rs 58, down from Rs 62. Amul’s Ultra High Temperature (UHT) milk drops to Rs 75 per liter from Rs 77. Other items like milk, butter, ghee, paneer, cheese, ice cream, snacks, and frozen foods all move to the 5 percent slab.
Mother Dairy followed suit, reducing prices on milkshakes, paneer, ghee, and frozen products. These moves aim to make dairy and fast-moving consumer goods cheaper, easing the burden on everyday buyers amid rising living costs.
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