New Delhi: Finance Minister Nirmala Sitharaman announced that India’s revamped Goods and Services Tax (GST) structure is already delivering visible benefits to consumers, with prices of key goods dropping across the country. Since the revised GST rates took effect on September 22, 2025, the government has been closely monitoring prices of 54 essential and consumer items to ensure that the rate reductions are fully passed on to buyers.
Big-ticket consumer goods such as televisions, air conditioners, and motorcycles below 350cc have been moved from the 28% GST slab to 18%, significantly lowering their retail prices. Similarly, small cars—those with petrol engines up to 1,200cc or diesel engines up to 1,500cc and under 4 meters in length—will now attract only 18% GST, down from the higher rates previously applied. The government has also simplified the tax system, streamlining it into two primary slabs of 5% and 18%, along with a special 40% rate for luxury and sin goods.
According to Sitharaman, these tax cuts are directly benefiting consumers, with reduced retail prices and an uptick in purchase activity, particularly ahead of the festive season. Appliances such as TVs, ACs, and washing machines are expected to become 8–9% cheaper, making them more affordable for middle-class households.
The Finance Minister also revealed that the government has received over 3,100 complaints related to businesses not passing on the tax benefits to customers. Of these, 3,075 cases have been forwarded to the appropriate authorities for investigation, signaling the government’s commitment to ensuring transparency and fair pricing.
The GST revision arrives just in time for the Navratri and Diwali shopping season, offering relief to families and stimulating consumer demand. By reducing taxes on both aspirational products like cars and electronics as well as essential goods, the government aims to boost domestic manufacturing, enhance consumption, and support the ‘Make in India’ initiative.
Experts believe the move will strengthen consumer confidence and encourage spending, helping sustain India’s economic growth momentum. The Finance Ministry emphasized that ensuring companies pass on these tax savings to end-users is crucial for building public trust and demonstrating the real-world impact of fiscal reforms.
