India’s Finance Minister, Nirmala Sitharaman, confirmed on Saturday, October 18, 2025, that the recent GST reforms are indeed bringing down prices for consumers. She made this announcement during a press conference for the ‘GST Bachat Utsav’ (GST Savings Festival).
The government has been actively tracking price reductions across 54 different items nationwide since the revised, lower GST rates became effective on September 22. “The reduction in GST rates has clearly boosted purchases, and we anticipate this positive trend in consumption to continue,” Ms. Sitharaman stated.
She emphasized the government’s confidence that businesses are consistently passing on these benefits to consumers for all affected items. In fact, for some products, companies have even passed on savings greater than the average GST rate cut.
The Department of Consumer Affairs has received 3,169 complaints regarding businesses not adjusting prices sufficiently after the GST reduction. Of these, 3,075 complaints have been forwarded to designated officers within the Central Board of Indirect Taxes and Customs (CBIC), with 94 complaints already resolved by the department.
To further streamline the process, the Minister announced that the grievance reporting portal will soon feature a new function. This will allow complaints to be directly routed to the chief commissioners in the relevant zones where the issues originated.
The new, lower GST rates, implemented since September 22, have led to price cuts on a wide array of 375 items, including everyday essentials like toothpaste and shampoo, as well as bigger purchases like cars and television sets.
Previously varied tax slabs of 5%, 12%, 18%, and 28% have been simplified into just two main rates: 5% and 18%. This significant streamlining means that approximately 99% of daily use items are now available at reduced prices.