How Much Will Customers Benefit as New GST Rates Start Today? (Social Media)
GST Reforms: The government has made it clear that the benefits of the GST reduction, effective September 22nd, will be immediately available to consumers. Whether it's food, medicines, or related equipment, shops will be required to sell these items at the new, lower price. This is no longer left to the discretion of the shopkeepers.
From Monday, there will be no GST on personal life and health insurance. Previously, these were taxed at 18 percent. This will make insurance cheaper for the general public.
Shopkeepers have been given the freedom to clear stock so they don't have to return products and adjust prices. However, they must reduce the price when selling during this period. If a shopkeeper fails to comply, customers can complain on the Consumer Affairs Ministry's website.
The GST reduction will reduce electronics prices by up to 10 percent and cars, scooters, and bikes by 12-15 percent. GST on packaged food items will be reduced from 12 percent to 5 percent. This means that shopkeepers will have to immediately offer cheaper goods to customers. Later, companies can adjust the price by changing the size or quantity of the pack.
The GST cut will have more than 400 items cheaper, with about 300 everyday items. This is expected to reduce the retail inflation in the current financial year 2025-26 by 25-30 basis points and a reduction of up to 40 basis points in the next financial year, 2026-27. The average GST rate in 2017 was 14.4 percent; in 2019 it will be reduced to 9.5 percent from September 22.
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