The GST Council has removed two tax slabs- 12 per cent and 28 per cent. Among many sectors, this will also impact the FMCG sector. From soaps to noodles, several household items are expected to become cheaper from September 22. The GST has been reduced from 12 per cent to five per cent on everyday items.
Some of these items include soaps, toothbrushes, hair oil, namkeen, instant noodles, chocolates, and instant coffee, which will attract a five per cent GST rate, while items like breads, paneer, and ultra-high temperature processed milk will have zero GST soon.
Also Read: After bumper GST cut, how much can you expect your Rs 10 lakh dream car to cost?
Add Zee Business as a Preferred Source
Items that moved from 12%/18% to 5% GST rate
Packaged namkeens, Bhujia, Sauces, Pasta, Instant Noodles, Chocolates, Coffee, Preserved Meat, Cornflakes, Butter, Ghee, Hair oil, Shampoo, Toothpaste, Toilet soap, Tooth brush, Shaving cream.
Feeding bottles, napkins for babies, and clinical diapers.
Items that will come under 0% GST rate
Ultra-High Temperature (UHT) milk, Chena or paneer, pre-packaged and labelled, Pizza bread, Khakhra, Chapathi or Roti.
A look at the reactions from the FMCG sector
Jayen Mehta, MD of Gujarat Co-operative Milk Marketing Federation, Amul:
“The government’s recent move to reduce Goods and Services Tax (GST) rates on dairy products has been welcomed by the country’s leading dairy cooperatives, which said the step would encourage wider adoption of milk products and support millions of farmers.
As part of the GST 2.0 rationalisation, the GST rate on major dairy products has been brought down from 12 per cent to 5 per cent.
Industry leaders said this landmark decision will help increase consumption of milk-based food items, boost affordability, and strengthen the income of farmers associated with the sector.”
Also Read: Which cancer drugs and rare disease medicines, health-related products will become cheaper from September 22? Check out list
Gujarat traders, locals hail GST 2.0 reforms
Vijay, a businessman in the FMCG sector, shared his enthusiasm: “Over 90 per cent of people will benefit from this. It will increase purchasing power and help common people a lot. This is a fantastic move.”
Dilip, another trader, echoed the sentiment: “I want to thank the Modi government. This came at the perfect time — just before Diwali. It’s a double bonanza for the people. Customers will benefit, and this will be a truly happy Diwali.”
Responding to concerns about the textile industry in Surat not yet receiving relief, BJP leader Rishikesh Patel assured that all proposals are under active consideration.
“Whenever reforms are implemented, all aspects are reviewed carefully,” he said.
Patel praised Prime Minister Narendra Modi and the NDA government for their decisive leadership.
Also Read- From middle class focus to tax sops to fine print: 5 things that make GST 2.0 a mini Budget for consumers
