GST Rate Cut From Monday: What Gets Cheaper

New Delhi- Prices of kitchen staples to electronics, from medicines and equipment to automobiles, will get cheaper from Monday as the reduced GST rates on about 375 items come into effect.

In a bonanza to consumers, the GST Council, comprising Centre and states, has decided to reduce tax rates on goods and services, from September 22 - the first day of the Navratri.

Mass consumption items like ghee, paneer, butter, 'namkeen', ketchup, jam, dry fruits, coffee and ice creams, and aspirational goods like TV, AC, washing machines will become cheaper.

Various FMCG companies have already announced reduction in prices in view of GST rationalisation.

With GST on most drugs and formulations, and medical devices like glucometers and diagonistic kits reduced to 5 per cent, the cost of medicines will come down for the common man. Also, home builders will benefit as GST on cement has been cut to 18 per cent, from 28 per cent.

The government has already directed pharmacies to revise their MRP or sell medicines at a lower rate after taking into account GST cut benefits.

The biggest beneficiaries of GST rate cut are buyers of automobiles wherein tax rates have been slashed to 18 per cent and 28 per cent for small and big cars, respectively.

Several car companies have already announced reduction in prices.

With regard to services, GST on beauty and physical well-being services, including services of health clubs, salons, barbers, fitness centres, yoga, etc, has been slashed from 18 per cent with Input Tax credit (ITC), to 5 per cent without tax credit.

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