GST changes from September 22: What’s cheaper, costlier in Bengaluru, and why double-check MRPs

The revised Goods and Services Tax (GST), announced earlier this month, will come into effect from tomorrow, with only two rates remaining in place: 5 per cent and 18 per cent. A special 40 per cent rate applies only to pan masala, cigarettes, aerated water with added sugar, carbonated beverages, and similar items.

Finance Minister Nirmala Sitharaman also underlined that many electronic items used by the middle class — including TVs, air conditioners, and some bikes — have been moved to the 18 per cent slab.

For consumers, the changes bring a mixed impact. Prices of some everyday essentials and services have fallen, providing relief to households already grappling with inflation. Conversely, leisure, luxury, and certain lifestyle-related items have become more expensive, prompting many to reconsider their spending habits.

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Traders and retailers in Bengaluru report that the transition has been smooth so far, though they are closely monitoring how customer demand evolves in the coming weeks.

What’s cheaper and costlier for Bengaluru consumers

Cheaper:

Daily essentials, including packaged foods, edible oils, and household cleaning products

Public transport services, such as app-based auto and cab rides within the city

Small electronic accessories like chargers, earphones, and USB cables

Medicines for common ailments and select medical devices

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Costlier:

Restaurant dining, especially at air-conditioned and premium outlets

Consumer durables, including refrigerators, washing machines, and air-conditioners

Beauty and grooming services at salons and spas

Premium smartphones and imported gadgets

For Bengaluru residents, the revised tax structure may slightly reduce grocery bills, while dining out or upgrading home appliances could become more expensive. Experts advise consumers to plan purchases carefully to make the most of the new GST regime.

Why you should double-check product MRPs

The Department of Consumer Affairs has issued a revised advisory to help companies implement GST changes, though local stores may face some confusion. Products made before September 22 may carry both the old and revised MRPs, potentially causing overcharging. For instance, a biscuit pack with an original MRP of ₹50 may now show ₹48, but some shopkeepers could still charge the higher price. Firms no longer need to advertise revised MRPs in newspapers and only have to circulate updated price lists to dealers, with copies to legal metrology authorities. Old packaging can be used until March 31, 2026, with corrections via stickers, stamps, or digital printing. Buyers are advised to check prices carefully.