GST Tax Reform: Maggi, Amul, Licious And Other Popular Brands Slash Prices

Bengaluru: Indian consumers can expect significant savings on everything from morning coffee to weekend ice cream as the country's biggest food companies roll out steep price cuts following the implementation of GST 2.0 on September 22. The government's streamlined tax structure, which reduced four GST slabs to just two rates of 5% and 18%, has prompted a pricing war among major brands eager to pass on savings to customers struggling with inflation. Dairy products are seeing some of the steepest cuts. Market leader Amul has reduced prices across more than 700 items, with butter dropping from Rs 62 to Rs 58 per 100 g pack and ghee falling by Rs 40 per liter to Rs 610. The company's cheese blocks are now Rs 30 cheaper, while even budget ice creams have been cut by Rs 1. Mother Dairy followed suit with price reductions on over 150 products. Their flavored milkshakes now cost Rs 28 instead of Rs 30, while frozen French Fries dropped by Rs 5 to Rs 95 per 400g pack. Premium ghee makers haven't been left behind. ITC slashed Rs 70 from its cow ghee, bringing the liter pack down to Rs 1,010, while Reliance Consumer Products cut Rs 50 from its premium offering.

Morning Beverages, Snacks Cost Less

Coffee lovers have reason to celebrate as major brands compete on pricing. Nestle reduced Nescafe Classic by Rs 30 to Rs 235 for a 45g jar, while its premium Nescafé Gold variant dropped by Rs 95 to Rs 755. Specialty coffee chain Blue Tokai announced it would implement reduced prices across its 180+ cafes by month-end, though specific savings weren't disclosed. Health drink manufacturer Hindustan Unilever also confirmed price cuts on popular Horlicks variants, making the nutritional supplement more accessible to families. Maggi instant noodles also became more attractive, with the company reducing prices while increasing pack sizes - now offering 600g for Rs 116 compared to the earlier 500g pack at Rs 120.

The confectionery sector is witnessing dramatic reductions. Italian chocolatier Ferrero cut Rs 50 from its popular Nutella spread (350g), now priced at Rs 399, while premium Ferrero Rocher boxes dropped by Rs 100 to Rs 879 for the 300g pack. Even everyday indulgences got cheaper. Dabur reduced prices on digestive tablets Hajmola by Rs 5, while ITC's Sunfeast Marie Light biscuits dropped from Rs 170 to Rs 150 for the family pack. Fruit juice consumers are benefiting significantly from the tax reform. Dabur's Real Juice liter packs dropped by Rs 8 to Rs 122, while PepsiCo distributor Varun Beverages cut Tropicana Apple Juice from Rs 115 to Rs 105 per liter. Basic hydration also got more affordable, with Aquafina bottled water reduced from Rs 20 to Rs 18 per liter. However, carbonated soft drinks remain unchanged as they continue attracting a 40% GST rate under the new structure. The convenience food segment saw substantial relief. Fresh meat brand Licious announced that Ready-to-Cook and Ready-to-Eat categories would benefit from GST reduction from 12% to 5%, translating to approximately 7% direct savings for consumers on marinated meats, curries, and ready meals.

What This Means for Your Budget

Industry analysts estimate that an average middle-class family spending Rs 8,000 monthly on groceries could save Rs 300-500 per month, depending on their consumption patterns. The price cuts are particularly significant for:

• Dairy products: 5-8% average reduction 
• Processed foods: 3-7% savings 
• Health drinks and supplements: 4-6% cuts 
• Premium confectionery: 8-12% reductions

While packaged food companies moved quickly to announce price cuts, the restaurant and food delivery sector's response remains unclear. Industry observers expect cafes and quick-service restaurants to gradually implement reduced pricing as competitive pressures build. The reformed GST structure aims to boost consumption by making daily essentials more affordable while simplifying tax compliance for businesses.

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