"Cars, ACs, and TVs May Soon Cost Less: Here’s the Full List of Items That Could Get Cheaper with New GST Cuts"
For India’s middle class, where even a small shift in tax
rates can make a big difference to household budgets, Prime Minister Narendra
Modi’s latest announcement comes as good news. The government is planning to
simplify the Goods and Services Tax (GST) system by reducing the current four
tax slabs of 5%, 12%, 18%, and 28% into just two — 5% and 18%. A separate
higher tax will still apply to luxury and harmful products like tobacco.
For everyday consumers, this move could mean real savings.
Prices of essential goods and big purchases alike are expected to drop. Items
such as clothes and textiles, farm equipment, auto parts, healthcare services,
insurance products, and even daily-use items in FMCG and retail could all
become more affordable.
This isn’t just a small tax adjustment — it’s a major reset
that could boost demand, improve household confidence, and give a push to
consumption-driven growth.
On Wednesday, Finance Minister Nirmala Sitharaman is set to
address a key meeting of the Group of Ministers (GoM) from various states,
where she will make a strong case for the sweeping GST reforms.
“The aim is to present the Centre’s perspective on the
reform plan. Even though the Union Finance Minister is not formally part of the
GoM, her presence and remarks will help members better understand the Centre’s
thinking and vision behind the proposal,” a government source told The Times of India. List
What Could Get Cheaper Under the New GST Regime?
If the proposed GST reforms go through, households can
expect relief on several essentials as well as big-ticket purchases. Here’s a
look at the key items:
• Small
Cars: Tax rate cut from 28% to 18%
• Insurance
Premiums: Down from 18% to 5% or even zero
• Daily-use
Essentials: From 5% to zero
• Air
Conditioners: From 28% to 18%
• Televisions:
From 28% to 18%
Everyday Items Likely to Shift to the 5% Slab (as per ANI)
• Tooth
powder
• Bhujia,
namkeen, potato chips
• Ketchup,
jam, mayonnaise
• Packaged
juices
• Pasta,
noodles
• Butter,
condensed milk, ghee, cheese
• Milk-based
beverages
Why This Matters
Lower GST rates don’t just mean cheaper prices for
consumers. They could set off a chain reaction — reducing logistics costs,
simplifying compliance for businesses, and lifting demand for goods that are
highly price-sensitive. More demand could, in turn, create jobs.
And at a time when global trade is facing uncertainty due to
Trump’s new tariff hikes, India’s move could also make its exports more
competitive in international markets.
