Cars, ACs, Televisions & More: Items Likely to Get Cheaper Under New GST Reforms
For India’s middle class, even a slight change in taxes can make a big difference to monthly budgets. That’s why Prime Minister Narendra Modi’s recent announcement on Goods and Services Tax (GST) reforms has come as welcome news.
The government is planning to streamline the GST structure, moving away from the existing four-tier system of 5%, 12%, 18%, and 28% to a simpler, two-slab structure of 5% and 18%. A separate “sin tax” slab will continue for tobacco and luxury goods.
What This Means for Consumers
This restructuring could translate into meaningful savings on both daily essentials and big-ticket purchases. Sectors likely to see price drops include:
- Automobiles: Small cars may move from the 28% slab to 18%.
- Appliances & Electronics: Air conditioners and televisions could also fall from 28% to 18%.
- Insurance:Premiums might drop from 18% to as low as 5% or even nil.
- Daily-use items: Many products currently at 5% could become tax-free.
Items Expected to Shift to 5% GST Slab (ANI)
- Tooth powder
- Bhujia, namkeen, potato chips
- Ketchup, jam, mayonnaise
- Packaged juices, pasta, noodles
- Butter, condensed milk, ghee, cheese
- Milk-based beverages
Why This Reform Matters
- This isn’t just about lower prices — it’s a reset aimed at reviving demand and boosting household sentiment. Lower GST rates are expected to:
- Cut logistics and compliance costs
- Increase demand for price-sensitive goods
- Spur job creation across industries
- Strengthen India’s export competitiveness at a time of global trade tensions
Finance Minister Nirmala Sitharaman will present the proposal at a key meeting of state finance ministers, making a case for the sweeping GST overhaul.
If approved, these reforms could provide a significant push to consumption-led growth, giving both households and businesses much-needed relief.
According to media sources.
