Modi’s GST Festival Hits India: 375 Products to Cost Less Starting Tomorrow
Nidhi | Sep 22, 2025, 14:29 IST
PM Modi and GST
( Image credit : ANI )
Highlight of the story: From September 22, Modi’s GST 2.0 rollout brings price reductions on over 375 products. Essentials like milk, paneer, butter, shampoo, and household items will cost less, while durable goods, cars, air conditioners, cement, and insurance premiums also see cuts. Companies have announced discounts ahead of the rollout, passing on GST benefits to consumers, giving Indian households tangible savings and easing monthly budgets across multiple segments.
Prime Minister Narendra Modi announced that the GST 2.0 rollout will take effect from midnight, September 22, reducing tax rates on over 375 common-use goods. Companies across sectors have announced price cuts ahead of the rollout, and more are expected to follow from Monday.
Amul and Mother Dairy: 200g paneer is Rs 92, down 3% from Rs 95. UHT milk is Rs 75 (Mother Dairy) and Rs 80 (Amul Milk Gold), down from Rs 77 and Rs 83.
Amul butter khakra: Rs 95 from Rs 100.
Amul cheese onion paratha: Rs 200 from Rs 240 after GST was reduced to nil from 18%.
Butter and cheese slices: Prices are 6% lower due to GST falling from 12% to 5%.
Ketchup, ghee, pickles, jams: Prices reduced by 4–8%.
Pringles (107g): Rs 110, 12% cheaper.
Kellogg’s corn flakes (900g): Rs 355, down from Rs 399; Sunfeast Marie Light biscuits (near 1 kg) reduced by 12%.
Ice creams: Mother Dairy 50ml vanilla cup is Rs 9 (previously Rs 10); 100ml Butterscotch cone Rs 30, 14% cheaper.
Household items including shampoo, soap, hair oil, toothpaste have moved from 18% to 5% GST, with prices 11–13% lower.
Whirlpool: 1-tonne air conditioners reduced by Rs 4,509–5,259; dishwashers by Rs 3,282–4,336.
Maruti Suzuki cars: Prices reduced by Rs 46,400 to Rs 1.29 lakh. Smaller variants, including hatchbacks and mini SUVs, saw the largest cuts.
Small cars now attract 18% GST, down from 28% plus cess. Larger cars are taxed at 40%, down from 28% plus 17–22% cess.
Dealers who purchased cars at older rates faced challenges selling them, resulting in estimated losses of Rs 2,500 crore.
Cement prices are expected to fall by around 10%, with JK Cement, UltraTech, and other producers passing on the GST reduction from 28% to 18%.
Cement is crucial for the construction of residential and commercial buildings, supporting sectors like MSMEs that produce electrical and other components.
Health and life insurance policies for individuals are now GST-exempt, potentially lowering annual premiums by up to 15%.
The government has urged companies to pass on the full benefits of the GST rate reductions to consumers.
The Finance Ministry will monitor monthly price changes through field GST officers to ensure compliance.
Some transitional issues, such as accumulation of unused input tax credit, have been flagged by smaller enterprises and auto dealers.
Economists from Bank of Baroda said the GST cuts provide a significant boost to consumption demand.
Lower prices open scope for rerouting household spending to savings and investments.
FMCG, durable goods, cars, cement, and insurance are all expected to see price reductions, giving households relief across multiple segments.
Starting September 22, the GST 2.0 rate cuts will take effect, reducing prices for over 375 goods and services across India, from food items and household essentials to durable goods, cars, cement, and insurance.
FMCG Price Reductions
GST 2.0 takes effect today with major tax reforms aimed at easing prices
( Image credit : IANS )
Amul and Mother Dairy: 200g paneer is Rs 92, down 3% from Rs 95. UHT milk is Rs 75 (Mother Dairy) and Rs 80 (Amul Milk Gold), down from Rs 77 and Rs 83.
Amul butter khakra: Rs 95 from Rs 100.
Amul cheese onion paratha: Rs 200 from Rs 240 after GST was reduced to nil from 18%.
Butter and cheese slices: Prices are 6% lower due to GST falling from 12% to 5%.
Ketchup, ghee, pickles, jams: Prices reduced by 4–8%.
Pringles (107g): Rs 110, 12% cheaper.
Kellogg’s corn flakes (900g): Rs 355, down from Rs 399; Sunfeast Marie Light biscuits (near 1 kg) reduced by 12%.
Ice creams: Mother Dairy 50ml vanilla cup is Rs 9 (previously Rs 10); 100ml Butterscotch cone Rs 30, 14% cheaper.
Household items including shampoo, soap, hair oil, toothpaste have moved from 18% to 5% GST, with prices 11–13% lower.
Durable Goods and Cars
HUL cuts prices of key products after GST rate reduction
( Image credit : IANS )
Whirlpool: 1-tonne air conditioners reduced by Rs 4,509–5,259; dishwashers by Rs 3,282–4,336.
Maruti Suzuki cars: Prices reduced by Rs 46,400 to Rs 1.29 lakh. Smaller variants, including hatchbacks and mini SUVs, saw the largest cuts.
Small cars now attract 18% GST, down from 28% plus cess. Larger cars are taxed at 40%, down from 28% plus 17–22% cess.
Dealers who purchased cars at older rates faced challenges selling them, resulting in estimated losses of Rs 2,500 crore.
Construction Materials
GST 2.0 rates take effect, around 370 items get cheaper
( Image credit : IANS )
Cement prices are expected to fall by around 10%, with JK Cement, UltraTech, and other producers passing on the GST reduction from 28% to 18%.
Cement is crucial for the construction of residential and commercial buildings, supporting sectors like MSMEs that produce electrical and other components.
Insurance Premiums
Government Oversight
The Finance Ministry will monitor monthly price changes through field GST officers to ensure compliance.
Some transitional issues, such as accumulation of unused input tax credit, have been flagged by smaller enterprises and auto dealers.
Impact on Consumers
Lower prices open scope for rerouting household spending to savings and investments.
FMCG, durable goods, cars, cement, and insurance are all expected to see price reductions, giving households relief across multiple segments.
Starting September 22, the GST 2.0 rate cuts will take effect, reducing prices for over 375 goods and services across India, from food items and household essentials to durable goods, cars, cement, and insurance.