GST New Rate: Will the prices of TVs, Fridges, Cars Reduce by September 22?

GST New Rate: GST Council Meeting 2025 was held recently in New Delhi. Several important decisions related to tax slab, new GST rates were announced. It is to be noted that as per GST system tax is levied on a product at every stage of production and distribution. Companies take credit for the tax paid on raw materials. But as soon as the goods are manufactured, the dealer or shopkeepers are given the bill.

Will the price of TV, Fridge, Soap, Oil reduce by September 22?

The central government has made a big cut in GST rates on about 400 goods and services. The new GST rates will be applicable from September 22. From food items to daily use tems, electronics, vehicles and insurance will become cheaper. The government aims that the benefits of this cut reach the common people directly and the effect of GST reduction should start reflecting from September 22. But, the question is how ready are the companies and shopkeepers to give the benefit of reduction in GST to the people in the coming 17 days and how will they pass it on to the common man?

This question is being raised because thousands of tonnes of old goods have already reached the shops and warehouses, which have the tag of old rates. In such a situation, the biggest challenge before the companies and shopkeepers is how to reduce the prices and give the direct benefit of this to the consumers.

How will companies pass on the benefits?

The first way is price adjustment. Companies will give credit notes to dealers for goods at the old rate. For example, if a dealer has bought a carton of soap at the old tax rate and now its price has decreased, then the company will give him an equal amount of credit. This will ensure that the dealer will not be at a loss and customers will be able to get cheaper prices.

Software and Billing Updates

A number of big retail chains have technical systems. They can update their billing software and point-of-sale machines immediately. From September 22, the new rates will be directly reflected on their bills. However, small grocery and neighbourhood shops will find it a little difficult to make this change because they do not have that much technical infrastructure.

New stickering and packing

Stickers with new MRP will be pasted on products like soap, shampoo, toothpaste. Companies have appointed teams that will go to warehouses and shops and paste stickers with new prices on old packs. Many companies are re-fixing trade schemes and promotions. It is possible that instead of reducing the price, the weight of the pack may be increased in some places. For example, a biscuit pack of Rs 10 may contain more biscuits than before.

In which areas will the impact be seen?

Everyday goods (FMCG): The weight of fixed price packs like namkeen, biscuits will increase. New prices will be directly pasted on things like shampoo, soap, toothpaste. Shopkeepers will get credit for the rate difference from the company.

Consumer durables: GST on these has been reduced from 28% to 18%. Companies are saying that sales will pick up during the festive season. For example, earlier an AC worth Rs 20,000 was taxed at Rs 5,600, now it will be Rs 3,600. The consumer will get a direct benefit of Rs 2,000.

Hotels and air travel: Hotel rooms costing less than Rs 7,500 per night will now be available at 5% GST instead of 12%. But only those customers will benefit who will make the payment after reaching the hotel. The old rate will be applicable on rooms already booked and paid for. There is an opposite effect on air travel. GST on premium economy, business and first class tickets has been increased from 12% to 18%.

Insurance: Health and life insurance policies will now be completely free from GST. This means that the consumer will get a direct saving of 18%. However, instead of reducing the premium, companies can provide additional facilities like personal accident cover or cashless facility in more hospitals.