The government has announced a major reform in GST slabs, which will be implemented from 22 September 2025. These tax reforms are going to reduce the prices of many items of daily use by about 10-15%. Essential household items like biscuits, soap, noodles, coffee, butter will now be more cheap than before. This change is especially news of relief for those who were cutting the expenditure due to inflation.
Big impact on daily goods
In the new GST rates, taxes on things like butter, cheese, sweets and salty snacks have been reduced from 12% to just 5%. At the same time, the tax on chocolate, biscuits, cornflex, coffee, ice cream, bottled water, hair oil, shampoo, soap, shaving cream and toothpaste has been reduced from 18% to 5%. This means that now all these things will be cheap and the effect of purchases of things used in the house will also be seen. However, tax has been increased from 28% to 40% on sugar drinks. But these changes are mostly going to reduce the prices of essential items of the household.
FMCG companies will benefit
This change is expected to benefit big FMCG companies like Hindustan Unilever, Britannia, Dabur, Marico, ITC and Nestle. The demand for products of these companies is likely to increase because now people will shop more due to low prices. This will also increase competition in the market.
Trade and supply chain will also be affected
It is believed that these reforms will reduce pressure on business and strengthen the supply chain. With this, small vendors and distributors will also be able to work better. Also, shopkeepers will not have much trouble with the availability of goods and prices.
Common man will get relief from inflation
Due to increasing inflation for some time, the burden on people had increased. Especially in the FMCG sector, there was a sluggishness because consumers were starting to reduce expenses. Now by cutting GST, these items will be cheap and people’s purchase will improve. Experts believe that this change is not only a profitable deal for consumers, but will also prove to be new energy in the market. Both small and big businesses will benefit from it and economic activity will improve.