GST rate cuts from today: 375 items get cheaper — from dairy to cars and electronics, here's what will cost you less

GST rate cut: The goods and services tax (GST) rate rationalisation announced by the GST Council earlier this month will come into effect today, on September 22, 2025.

Union Finance Minister Nirmala Sitharaman said the Council approved revision of GST slabs from four (5 per cent, 12 per cent, 18 per cent, and 28 per cent); to two (5 per cent and 18 per cent), plus a special rate of 40 per cent on select items and sin goods.

‘Relief for middle-class’: Nirmala Sitharaman

Termed as a “Diwali gift” to consumers, Sitharaman said the aim of the new reforms is to bring relief to the middle class. “In common man and middle class items, there is a complete reduction,” she stated.

"This reform is not just about rationalising rates. It's also on structural reforms. It's also about ease of living, so that businesses can conduct their operations with the GST with great ease. We've reduced the slabs. There shall be only two slabs, and we are also addressing the issues of compensation cess,” the finance minister added.

GST rate: What items get cheaper?

As many as 375 items, including automobiles, electronics, equipment, kitchen staples and medicines, are set to get cheaper for you from today. Here's a look at what changes:

• Food items that will see reduced prices include beverages containing milk, coffee, condensed milk, biscuits, butter, cereals, corn flakes, drinking water packed in 20-litre bottles, dry fruits, fruit pulp or fruit juice, ghee, ice cream, jam and fruit jellies, ketchup, namkeen, paneer, pastry, sausages and meat, and tender coconut water, among others.
• Other daily items such as after-shave lotion, face cream, face powder, hair oil, shampoos, shaving cream, talcum powder, toothbrush, and toilet soap bars could see reduction in prices.
• In electronics, the items that will see price cuts include, airconditioners (ACs), diswashers, televisions (TVs), and washing machines.
• Cost of medicines will come down for the common man, GST for medical devices such as diagonistic kits and glucometers has been cut to 5 per cent, which could lead to price cuts as well. The government has already directed pharmacies to revise their MRP or sell medicines at a lower rate after taking into account GST cut benefits, according to a PTI report.
• In the beauty and physical well-being services, GST has been slashed for barbers, fitness centres, health clubs, salons, and yoga, which could be passed to the end customers.
• For homebuyers, GST on cement has been reduced from 28 per cent to 18 per cent, which is likely to lead in lower home prices.
• The biggest beneficiary has been the auto space, where effective tax including cess has been reduced from 35-50 per cent to flat 40 per cent.
• Notably, after the GST rate cut announcement, several consumer brands announced reduction in the prices of their goods, including Amul, HUL, L'Oréal and Himalaya. Auto brands also rushed to announced the “Diwali” rate reductions from September 22, 2025.

Hindustan Unilever slashes prices

Hindustan Unilever, the FMCG maker of popular brands such as Dove shampoo, Kissan Jam, Horlicks, Lux and Lifebuoy soaps is set to slash prices, according to an advertisement by the company.

• It showed that 340-ml Dove shampoo bottle will now be sold at a retail price of ₹435, compared to the earlier ₹490.
• A 75*4 gm pack of four Lifebuoy soaps will cost ₹60 which earlier sold at a price of ₹68.
• The price waiver on a 200-gm jar of Horlicks is of ₹20 which will now be sold at a retail price of ₹110 from ₹130.
• The price cut on 200 gm of Kissan Jam is of ₹10 which will now cast ₹80.

As per government guidelines, manufacturers are required to revise maximum retail price (MRP) on unsold stock until December 31, 2025, deadline. This implies that HUL's fresh stock will have revised MRP or higher grammage packs will be dispatched to markets.

New price of Rail Neer: Bottled water is cheaper

According to a circular issued by the Railway Board, the price of a 1-litre bottle of Rail Neer has been reduced from ₹15 to ₹14, while a 500 ml bottle will now be sold for ₹9 instead of an earlier price of ₹10. The new rates will come into effect from September 22, 2025.

“In order to directly pass on the benefit of the reduced GST to consumers, it has been decided to reduce the maximum selling price of Rail Neer from ₹15 to ₹14 for 1 liter and from ₹10 to ₹9 for half a liter,” the ministry posted on X (formerly Twitter).

The revised MRP will also apply to other shortlisted packaged drinking water bottles of various brands sold at railway premises and trains throughout the country. “Necessary action may be taken accordingly,” the circular noted.

These 11 popular hatchbacks to be significantly affordable

Under the new regime, the hatchbacks will see a tax of 18 per cent, down from 28 per cent. Also, the compensation cess will not be there anymore, which means the total tax incidence on these cars will be significantly lower.

• Maruti Suzuki Alto K10 prices have been cut by up to ₹107,600, depending on the variants. Starting from September 22, the small hatchback will be sold at a starting price of ₹369,900 (ex-showroom).
• Maruti Suzuki S-Presso will be available at a starting price of ₹349,900 (ex-showroom). The S-Presso has seen a price cut of up to ₹129,600, depending on the variant.
• Maruti Suzuki Celerio will be available at a starting price of ₹469,900 lakh (ex-showroom) from September 22. Maruti Suzuki has announced a price cut of up to ₹94,100 for this model.
• Maruti Suzuki WagonR will be available at a starting price of ₹498,900 (ex-showroom). The hatchback has received a price cut of up to ₹79,600.
• Maruti Suzuki Swift has seen a significant price cut of up to ₹84,600 and will be available at a starting price of ₹578,900 (ex-showroom).
• Maruti Suzuki Baleno will be available at a starting price of ₹598,900 (ex-showroom) with a price drop of up to ₹86,100 under the GST 2.0 regime.
• Maruti Suzuki Ignis has seen a price cut of up to ₹71,300 and will be available at a starting price of ₹535,100 (ex-showroom), starting from September 22.
• Tata Tiago has received a price cut of up to ₹75,000 under the revamped tax regime.
• Tata Altroz has received a major price cut of ₹110,000 and will be available at a starting price of ₹630,390 (ex-showroom), from September 22.
• Hyundai Grand i10 Nios has seen a price cut of up to ₹73,800 under the GST 2.0 regime. With this, the hatchback will be available at a starting price of ₹547,278 (ex-showroom), effective from September 22.
• Hyundai i20 has slashed the pricing of the i20 by up to ₹86,796. With this, the i20 will be available at a starting price of ₹686,865 (ex-showroom), effective from September 22.

Amul cuts prices of over 700 items

Dairy and food brand Amul has slashed the prices of over 700 products, with the aim to pass on GST benefits to consumers, effective from September 22. “This revision is across the range of product categories like butter, ghee, UHT milk, ice cream, cheese, paneer, chocolates, bakery range, frozen dairy and potato snacks, condensed milk, peanut spread, malt-based drink, etc,” GCMMF said.

The prices of pouch and packaged milk will remain unchanged, as they were not subject to GST even before the reforms.

• Butter - Prices have been reduced from ₹62 per 100 gm to ₹58.
• Ghee - ₹610 per litre from ₹650 per litre, a ₹40 price cut.
• Cheese block - ₹545 per kg from ₹575 per kg, ₹30 reduction.
• Paneer - 200g of paneer will cost ₹95 from 22 September, a reduction from the current price of ₹99.
• Ice cream - Starting September 22, Amul ice cream prices will range from ₹9 to ₹550, down from the earlier ₹10 to ₹600 range.
• Amul Protein - Products will fall in the range of ₹145 to ₹3,690, from ₹150 to ₹4,100.
• Frozen snacks - From 22 September, frozen snacks will range in price from ₹42 to ₹380, previously priced from ₹45 to ₹400.
• Bakery products - Baked goods will cost in the range of ₹10 to ₹270 from ₹11 to ₹300.

GST rejig: What becomes more expensive?

• Soft drinks such as Coca-Cola and Pepsi, as well as other non-alcoholic beverages, will see price hikes as the GST Council approved to raise the tax rate on carbonated drinks from 28 per cent to 40 per cent, PTI reported.
• Other non-alcoholic beverages will see a price increase because the GST on these items has been raised from 18 per cent to 40 per cent.
• The Council also raised the rate on all goods, including aerated waters, containing added sugar or other sweetening matter or flavoured to 40 per cent from 28 per cent.
• A 40 per cent GST rate will be imposed on all petrol and diesel vehicles exceeding 1,200 cc and 1,500 cc, respectively, as well as those longer than 4,000 mm. It includes motorcycles above 350 cc, yachts, aircraft for personal use, station wagons, racing cars, and smoking pipes.
• Additionally, ‘sin’ goods such as bidis, cigarettes, pan masala, tobacco and tobacco products, will also be taxed at a 40 per cent GST rate.

(With inputs from Agencies)