GST 2.0 Brings Relief On Food, But Pain For Appliance Buyers

The prices of groceries and food items have a major impact on people's lives. After the implementation of GST 2.0, a price reduction has been announced for some essential food items. The GST, which was previously 5%, has now been reduced to 3%.

As a result, the prices of items like pulses, grains, and oil have decreased. This directly benefits household expenses. Even if the reduction seems small, it can lead to significant savings in monthly budgets over time-especially for middle-class families.

No Change in Exempted Items

Since items like milk, vegetables, and fruits are already on the GST exemption list, their prices remain unchanged. However, some packaged goods have also seen a price cut. Overall, GST 2.0 has provided a modest amount of relief to household budgets. If more essential goods are included in future reductions, the benefits for the public could be much greater.

Electronics Get Costlier

While some goods have become cheaper under GST 2.0, the prices of electronic appliances have gone up. The GST rate, which was previously 18%, has now been raised to 22%.

This translates to an additional cost of Rs 2,000 to Rs 5,000 on appliances like fridges, ACs, and washing machines. Since electronics are typically bought in large numbers during the festive season, this price hike is expected to cause difficulties for many buyers-particularly middle-class households.

Discounts Cushion the Blow

To offset the impact, several companies are offering discounts, especially through online sales. However, despite these offers, the increase in appliance prices has added to the burden of household expenses, making people think twice before making new purchases.

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