Consumer Affairs Secretary Nidhi Khare issued a strong warning to companies on Monday: pass on the benefits of lower Goods and Services Tax (GST) rates to shoppers, or face tough penalties. In an interview with NDTV Profit, she made it clear that failing to adjust prices could count as an unfair practice, and the government stands ready to crack down with class-action measures. Khare promised quick responses to any consumer complaints about hidden GST hikes.
This alert arrives just as India’s revamped GST system kicked in, slashing taxes on about 370 items. The changes target everyday essentials and life-saving medicines to ease the burden on households. Finance Minister Nirmala Sitharaman noted that these GST reductions could pump nearly Rs 2 lakh crore into the economy by giving families more money to spend.
Shoppers will notice lower prices on common foods like UHT milk, paneer, chapatis, parathas, butter, biscuits, namkeen, ketchup, and fruit juices. Toiletries such as soaps, shampoos, and hair oil now carry zero GST, as do school supplies like notebooks and pencils.
In healthcare, essential drugs for cancer and rare diseases get full GST exemptions. Diagnostic kits and glucometers drop to a mere 5% rate, making health monitoring more affordable.
The housing sector benefits too, with cement’s GST falling from 28% to 18%. Services like salon visits, gym memberships, and yoga classes also land in lower GST brackets, helping everyday routines cost less.
Not everything gets a break, though. Tobacco, pan masala, and aerated drinks stay at a steep 40% to balance government revenue. Large SUVs and MPVs join that high-tax group for the same reason.
Officials expect these GST cuts on essentials, medicines, and household goods to spark higher spending and fuel economic growth in the months ahead.
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