The revised goods and services tax (GST) regime, which came into effect from September 22, significantly overhauls India’s tax system as it seeks to cut prices of daily essential goods and improve business compliance.
The latest version of the indirect tax system, introduced first in 2017, curtails the number of slabs to just two – 5 percent and 18 percent, from the earlier four slabs. A sin good tax rate of 40 percent has also been introduced for luxury and tobacco products.
The GST Council, which comprises of both Centre and states, had passed the proposals in its September 3 meeting.
Experts hope the tax cuts will help bring down prices of most daily items and fuel a demand surge as the festival season begins.
The new rates will be effective on some of the most popular food items of major brands such as Amul, Mother Dairy, Dabur, Maggi Noodles, Tropicana, HUL’s daily essentials and on new-age cafes such as Blue Tokai.
Here’s a list of major popular brands that will see a price cut:
Amul
Amul, known for its milk and other dairy products, announced rate reduction in 700 of its items, including ghee, paneer, butter, cheese, ice cream and snacks. Amul butter will now cost Rs 58, reduced by Rs 4, with the 500gm pack to cost Rs 285. Amul ghee’s price for a litre has been cut by Rs 40 to Rs 610. Check the full list here
Mother Dairy
Mother Dairy too announced price cuts across its products. Most of its products fall in the 5 percent or the 0 percent slab. Double toned milk pouch of 450 ml will now cost Rs 32, down by Re 1. Paneer will cost Rs 3 less at Rs 92 for 200 gm, butter will be charged at Rs 58, down Rs 4. Ghee’s 1-litre tin/pouch will be cheaper by Rs 30. Check the full list here
Dabur
FMCG major Dabur too has started passing on the rate cut benefits to consumers with its popular Real Juice costing Rs 8 less at Rs 122 for 1-litre pack. Chyavanprakash will now be charged at Rs 440 for a 900-gm bottle. Hajmola will turn Rs 5 cheaper for a bottle of 120 tablets.
Nestle
Nestle India has reduced the price of its instant noodles Maggi weighing 600 gm by Rs 4 to Rs 116. The price of Nescafe Classic (45 gm) has been reduced by Rs 30, while Nescafe Gold is set to cost Rs 95 less at Rs 755.
ITC
ITC Ltd’s cow ghee rate has been slashed by Rs 70 to Rs 1,010, Sunfeast Marie Light’s 956-gm pack to cost Rs 20 less at Rs 150.
Licious
Online meat and seafood seller reduced prices of its ready-to-cook and ready-to-eat segments with GST rates going down from 12 percent to 5 percent. The two segments include food items such as kebabs, curries, grills, marinated meals, among others.
Hindustan Unilever
India’s largest FMCG company announced price cuts for its popular brands such as Horlicks, Kissan Jam, Bru Coffee, among others.
Blue Tokai
The coffee shop also announced price cuts in food and beverage services across its outlets, likely to be implemented by September end, according to NDTV.
Ferrero Rocher, Nutella
The price of hazelnut spread Nutella has dropped to Rs 399, down by Rs 50, while its 300-gm chocolate pack will cost Rs 100 less at Rs 879.
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