The revised Goods and Services Tax (GST) structure announced by the GST Council earlier this year will roll out from Monday, September 22, 2025, bringing price cuts to a wide range of consumer goods and services.
Union Finance Minister Nirmala Sitharaman said the Council has reduced the four-tier GST slabs (5%, 12%, 18% and 28%) to just two rates 5% and 18% with a special 40% tax on select “sin goods” and luxury items. Calling it a “Diwali gift” for the middle class, she added that the reforms are aimed at simplifying compliance and lowering costs for households and businesses.
What gets cheaper from tomorrow
From food items to medicines, electronics to automobiles, nearly 375 products and services will see price reductions from September 22.
- Food & beverages: Coffee, butter, paneer, biscuits, cornflakes, ghee, ice cream, dry fruits, ketchup, fruit juice, jam, pastries, sausages, namkeen, and tender coconut water.
- Daily essentials: Shampoos, face creams, soaps, hair oil, talcum powder, toothbrushes, and shaving products.
- Electronics & appliances: ACs, washing machines, dishwashers, and televisions.
- Medicines: GST on diagnostic kits and glucometers has been slashed to 5%. Pharmacies have been directed to adjust MRPs accordingly, according to PTI.
- Services: Salons, beauty clinics, fitness centres, and yoga institutes will also turn cheaper.
- Housing: GST on cement has been reduced from 28% to 18%, likely easing costs for homebuyers.
- Automobiles: Effective tax rates for cars, including cess, have been lowered to 40% from 35–50%, giving a direct relief to car buyers.
- Several brands have already announced price revisions, including Amul, Hindustan Unilever, L’Oréal, Himalaya, and leading auto companies.
FMCG price cuts: HUL revises MRPs
FMCG giant Hindustan Unilever Ltd (HUL) confirmed sharp price reductions across its portfolio.
- Dove shampoo (340 ml) will now retail at ₹435, down from ₹490.
- A pack of four Lifebuoy soaps (75*4 gm) will cost ₹60 instead of ₹68.
- Horlicks (200 gm) jars will sell at ₹110, down from ₹130.
- Kissan jam (200 gm) will now be available at ₹80, lower by ₹10.
- The revised MRPs must reflect across shelves by December 31, 2025, per government rules.
Rail Neer turns cheaper
The Railway Board has cut prices of packaged drinking water at railway stations. Starting September 22, a one-litre Rail Neer bottle will cost ₹14 (down from ₹15), while a half-litre bottle will be sold at ₹9 (earlier ₹10). The Railway Ministry said the move aims to “directly pass GST benefits to passengers.”
Cars to see major price cuts
Small hatchbacks are among the biggest beneficiaries of the GST revamp:
- Maruti Suzuki Alto K10: Price cut up to ₹1.07 lakh; new starting price ₹3.69 lakh.
- Maruti Suzuki S-Presso: Up to ₹1.29 lakh cheaper; base price ₹3.49 lakh.
- WagonR: Price reduced by up to ₹79,600; starting ₹4.98 lakh.
- Swift: New base price ₹5.78 lakh after up to ₹84,600 cut.
- Tata Altroz: Price drop of ₹1.1 lakh; now starts at ₹6.30 lakh.
- Hyundai Grand i10 Nios: Cut up to ₹73,800; new price ₹5.47 lakh.
- Hyundai i20: Price slashed by up to ₹86,796; starts at ₹6.86 lakh.
Amul joins the price-cut race
Dairy major Amul has reduced prices of over 700 products, including butter, paneer, ghee, cheese, chocolates, snacks, and ice creams. This excludes milk pouches, which were outside the GST ambit.
- Butter will now cost ₹58 per 100 gm (earlier ₹62).
- Ghee has dropped to ₹610 per litre, from ₹650.
- Cheese block price reduced ₹30 to ₹545 a kg.
- Paneer (200 gm) will cost ₹95 instead of ₹99.
- Amul’s ice cream range will be available between ₹9 and ₹550, lower than the earlier ₹10–₹600 range.
What gets more expensive
Not all products are cheaper under GST 2.0. Prices of soft drinks and carbonated beverages such as Coca-Cola and Pepsi will rise as GST has been raised from 28% to 40%, PTI reported. All sugar-sweetened beverages and aerated drinks are now in the 40% bracket.
High-end vehicles (diesel cars above 1,500 cc and petrol cars above 1,200 cc), motorcycles above 350 cc, yachts, and personal-use aircraft will also carry a 40% GST. Tobacco, cigarettes, pan masala, and other “sin goods” will remain at the highest tax slab.