New Delhi: India’s new Goods and Services Tax (GST 2.0) regime came into effect today, ushering in major price cuts on everything from biscuits, soaps, ghee, and butter to automobiles. Prime Minister Narendra Modi, addressing the nation on Sunday evening, hailed the reform as a “GST Savings Festival” and a crucial step towards Atmanirbhar Bharat.
Under the new structure, GST has been simplified to just two slabs — 5% and 18%, with a special 40% sin tax for luxury and demerit goods such as cigarettes. The earlier four-slab system of 5%, 12%, 18%, and 28% has been scrapped.
The Prime Minister said the revision would boost consumer purchasing power, reduce tax disputes, and give momentum to India’s growth story. “GST has fulfilled the dream of One Nation, One Tax,” Modi noted, adding that the reform would bring relief to middle-class families and the common man alike.
Festive Discounts and Big Corporate Announcements
Amul has cut prices across nearly 700 products, while leading automakers — including Maruti, Tata, Hyundai, Kia, and Skoda — have announced sweeping price reductions on vehicles, adding to the festive cheer.
Milma Joins In with Over 100 Price Cuts
Kerala’s dairy giant Milma slashed prices on ghee, butter, paneer, and ice cream:
- Ghee: ₹675 per litre (down from ₹720)
- Butter (400g): ₹225 (down from ₹240)
- Paneer (500g): ₹234 (down from ₹245)
- Ice Cream: 12–13% cheaper after GST cut from 18% to 5%
- Flavoured Milk: Tax reduced from 12% to 5%
- UHT Milk: Now completely tax-free
With GST 2.0 in place, consumers can look forward to lower bills and a stronger push to India’s domestic economy.
