Groceries, medicines, electronic items, cars get cheaper
New lower GST rates kicked in from Monday, resulting in a slashing of prices of as many as 375 items ranging from toothpaste and shampoo to cars and television sets, a move seen as an attempt to boost consumption to cushion an economy facing tariff headwinds.
Tax rates of 5, 12, 18, and 28 per cent have been clubbed into two rates of 5 per cent and 18 per cent, resulting in a reduced price of 99 per cent of daily use items.
FMCG, car companies, electronics manufacturers and pharma companies have lowered prices. As many as 375 items, including groceries, agri-equipment, clothing, medicines and automobiles, have got cheaper.
Finance Minister Nirmala Sitharaman visited the busy Laxmi Nagar market in the national capital and interacted with a stationery shop owner.
“The shopkeeper shared that Nex-Gen GST rate cuts on many stationery items have reduced prices, benefitting students and parents,” the Finance Minister’s Office said in a X post.
Govt warns firms against not passing GST cuts to consumers: Consumer Affairs Secretary Nidhi Khare on Monday warned companies that they will face strict action if they fail to pass on the benefits of reduced GST rates to consumers.
In an interview with NDTV Profit, Khare said that any company not reflecting the revised GST rates in their prices will be treated as indulging in “unfair practice.” She added that the government is fully equipped to monitor compliance.