In a recent move to ease the tax burden on everyday essentials, India’s central government slashed the Goods and Services Tax (GST) on all milk products as part of its major tax reform. But in areas like North 24 Parganas in West Bengal, shoppers at Bangla Dairy outlets are still shelling out the old prices, even though dealers are snapping up stock under the lower GST rates.
Biplob Majumdar, a dealer with Bangla Dairy in Sodepur, North 24 Parganas, shared his frustration with . “We’re buying these goods at the new, reduced GST slab, but it hasn’t trickled down to customers at all,” he said. “The company cut the GST, yet our sales prices stay the same. We don’t add GST on top when we sell, so folks pay what they always have. No price drops here—it’s only hitting what we pay suppliers, not what people buy.”
This hiccup comes right after the rollout of “GST 2.0” on September 22, the biggest shake-up to indirect taxes since GST launched in 2017. The old four-tier system—5%, 12%, 18%, and 28%—now boils down to just two slabs: 5% and 18%. The goal? Make taxes simpler and get more money flowing into consumer pockets to spark spending.
Across India, many fast-moving consumer goods (FMCG) brands have already jumped on board, pushing out new price lists through distributors, websites, and ads. Shoppers are seeing cuts on daily staples and packaged foods, which could help stretch budgets further.
These changes fit into Prime Minister Narendra Modi’s big-picture plan to revamp India’s tax system and rev up household spending—after all, consumer habits drive more than half of the country’s GDP. And the timing couldn’t be better: with the festive season kicking off, Indians gear up for extra splurges on everything from clothes to gadgets, potentially amplifying the reform’s boost.
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