Good News for Indians ahead of festive season as GST rate cut kicks in from Monday; check full list of items getting cheaper

GST rate cuts: In a massive update for the middle-class of India(BHARAT) on the first day of the Navaratri, prices of ghee, paneer, butter, electronics, medicines and automobiles will get cheaper as the reduced GST rates on about 375 items come into effect on Monday. In a matter of Diwali gift for the nation, GST will be a two-tier structure wherein majority of goods and services will attract tax of 5 and 18 per cent from September 22.

As a result of the GST rate cuts, about 99 per cent of goods under the 12 per cent GST slab currently will move to 5 per cent, which will result in 90 per cent items under 28 per cent tax slab coming down to 18 per cent bracket.

GST rate cuts: List of items to get cheaper

As per a report by PTI news agency, mass consumption items like ghee, paneer, butter, ‘namkeen’, ketchup, jam, dry fruits, coffee and ice creams, and aspirational goods like TV, AC, washing machines will become cheaper. Various FMCG companies have already announced reduction in prices in view of GST rationalisation.

GST update on medical devices like glucometers and diagonistic kits

GST has been reduced to 5 percent on most medicines and formulations, and medical devices such as glucometers and diagnostic kits, reducing the cost of medicines for the common man. Home builders will also receive relief as the GST on cement has been reduced from 28 percent to 18 percent. Automobile buyers will benefit the most from the GST rate cut, with the tax rate on small cars being reduced to 18 percent and on large cars to 28 percent.

Several car companies have already announced price reductions. Prices of other daily use items such as talcum powder, face powder, shaving cream, and after-shave lotion may also decrease as the GST on these items has been reduced from 18 percent to 5 percent.

(With inputs from agencies)