GST Reform: Sitharaman Vows To Ensure Benefits Reach Consumers
New Delhi, Finance minister Nirmala Sitharaman on saturday called the upcoming GST overhaul a “people’s reform”, promising that she will personally monitor whether companies pass on tax cuts to consumers through price reductions.The revamped GST structure kicks in from September 22 (Navratri Day 1) and will touch nearly 400 products — from soaps to cars, shampoos to tractors, and even air conditioners.
🛒 New GST Slab Structure
🏡 Everyday Impact
👀 Monitoring & Compliance
🍿 Confusion ClearedThe overhaul also ends years of classification disputes:
👉 The government believes the reform will boost consumption, curb inflation, and trigger a “virtuous cycle” of growth by putting more money in people’s hands. Disclaimer:The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk.
🛒 New GST Slab Structure
- ✅ 5% GST: Daily-use goods (food, groceries, FMCG)
- ✅ 18% GST: All other items (standard rate)
- ❌ No GST: Bread, milk, paneer, life & health insurance premiums
- 🚫 40% GST: Limited to sin goods & ultra-luxury items
- ❌ Removed slabs: 12% & 28% categories scrapped
🏡 Everyday Impact
- Households: Lower bills on groceries, medicines, and essentials.
- Aspirational buyers: Cars, fridges, washing machines, and ACs to cost less.
- Insurance: Premiums on health & life policies now tax-free.
👀 Monitoring & Compliance
- FM to track industry pricing post-September 22.
- Industries from automakers to apparel brands have already begun announcing price cuts.
- Businesses will benefit from simplified compliance, faster refunds, and 3-day registration norms.
🍿 Confusion ClearedThe overhaul also ends years of classification disputes:
- Popcorn: Now 5% tax, whether loose, packed, salted, or spiced.
- Cream buns: Cut from 18% to 5%.
👉 The government believes the reform will boost consumption, curb inflation, and trigger a “virtuous cycle” of growth by putting more money in people’s hands. Disclaimer:The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk.