Daily essentials and food products will see price cuts from Monday as companies extend the benefits of GST 2.0 directly to consumers.
Mass consumption items such as ghee, paneer, butter, namkeen, ketchup, jam, dry fruits, coffee and ice creams will be cheaper.
FMCG majors including Dabur, ITC, Procter & Gamble, Emami, Nestlé, RCPL, Amul and Hindustan Unilever (HUL) have issued revised price lists effective September 22.
These cover soaps, shampoos, baby diapers, toothpaste, razors, and after-shave lotions, alongside popular food and beverage items.
Nestlé India has raised the pack size of Maggi noodles from 500 gm to 600 gm while reducing the price from Rs 120 to Rs 116. The company has also cut the price of Nescafé Classic (45 gm) to Rs 235, a reduction of Rs 30, and dropped Nescafé Gold by Rs 95 to Rs755.
Varun Beverages, PepsiCo’s distributor, has trimmed the price of Tropicana Apple Juice (1 litre) to Rs 105 from Rs 115 and Slice Mango Juice (1.2 litre) from Rs 70 to Rs 65. A one-litre Aquafina water bottle will now cost Rs 18 instead of Rs 20, though prices of aerated drinks remain unchanged under the higher tax bracket.
Chocolate maker Ferrero has reduced Nutella (350 gm) by Rs 50 to Rs 399 and Ferrero Rocher (300 gm) by Rs 100 to Rs 879.
Dairy giant Amul has slashed butter prices (100 gm) from Rs 62 to Rs 58, ghee (1 litre) from Rs 650 to Rs 610, and paneer (200 gm) from Rs99 to Rs 95. Its ice cream range will now start at Rs 9 instead of Rs 10.
HUL has also announced price cuts across its portfolio, including Dove shampoo, Lux and Lifebuoy soaps, Horlicks, Kissan Jam, and Bru coffee.
Prime Minister Narendra Modi on Sunday urged people to promote swadeshi goods and said the next generation of GST reforms will accelerate India’s growth story, ease business operations, and attract more investors.
“On the first day of Navratri, the country is going to take an important and big step for Atmanirbhar Bharat. With the sunrise tomorrow, the next generation GST reforms will come into effect. A ‘GST bachat utsav (savings festival)’ will begin tomorrow,” Modi said in his address to the nation.
Linking the reforms to the festive season, Modi said, “Tyohaaro ke iss mausam mein sabka muh meetha hoga. Desh ke har pariwar ki khushiya badhegi… I extend my heartfelt congratulations and best wishes to millions of families across the country for the Next Generation GST reforms and ‘Bachat Utsav’.”
“You will be able to buy things you like more easily. The poor, middle class, neo middle class, youths, farmers, women, traders and shopkeepers will benefit from this,” he said.
The GST Council, comprising the Centre and states, had decided earlier this month to roll out GST 2.0 from September 22.
Under the new structure, most goods and services will attract tax of either 5 per cent or 18 per cent. Ultra-luxury goods will face 40 per cent tax, while tobacco and related products remain in the 28 per cent plus cess category.
Till now, GST was levied in four slabs — 5 per cent, 12 per cent, 18 per cent and 28 per cent along with compensation cess on luxury and sin goods.
A recent study by industry body FICCI estimates that GST 2.0 may result in short-term revenue losses for the government but predicts these will be offset by higher consumption, better compliance, and wider coverage in the long run.
