Starting Monday, September 22, 2025, consumers can look forward to lower prices on a wide range of daily essentials and food items. Major Fast-Moving Consumer Goods (FMCG) companies have announced significant price reductions, passing on the benefits of the recent GST 2.0 tax cuts directly to shoppers.
This exciting development is anticipated to spark a notable increase in consumer spending and a surge in sales, perfectly timed for the upcoming festive season, which begins with the Navratra celebrations. In related news, the GST rate cut officially takes effect on September 22, making various goods and services more affordable.
FMCG firms are swiftly implementing the GST 2.0 benefits by reducing prices without delay. Alongside these price cuts, many are also offering special festival discounts, hoping to kickstart a new phase of growth. This comes after several challenging quarters marked by persistent food inflation and slower urban consumer spending.
Effective Monday, September 22, 2025, companies across the FMCG sector have rolled out updated price lists, reflecting new Maximum Retail Prices (MRPs) on a variety of products. This includes household staples like soaps, shampoos, baby diapers, toothpastes, razors, and after-shave lotions.
Similarly, food manufacturers have also announced price reductions on a wide range of items, from popular snacks like namkeen and bhujia to delightful sweets, coffee, tea, butter, ghee, ice cream, and chocolates.
These newly priced products, featuring updated MRP tags, are already being distributed to warehouses, e-commerce platforms, and traditional kirana stores, with manufacturers absorbing the tax differential. Furthermore, to ensure a smooth transition, existing market inventory has been adjusted to the new Goods & Services Tax (GST) structure through special trade discounts and Quantity Purchase Scheme (QPS) initiatives. Meanwhile, the ruling party is reportedly launching a ‘GST savings festival’ to mark the introduction of the new two-rate regime.
Prominent FMCG leaders like Dabur, ITC, Procter & Gamble, Emami, Nestle, RCPL, Amul, and HUL have all issued new price lists. These changes have been communicated to their distributors and directly to consumers via their websites and advertisements in local newspapers.
Specifically, Dabur, an Indian brand, has made several items more affordable. Their 1-liter Real Juice now costs ₹122 (down from ₹130), and 900gm Chyawanprakash is ₹440 (previously ₹475). Dabur Red and Meswak toothpastes (200gm) are reduced from ₹153 to ₹135, while a 120-tablet pack of Hajmola digestive pills is now ₹65, down from ₹70.
Nestle India has also adjusted its pricing. While increasing the quantity of its popular Maggi instant noodles from 500gm to 600gm, the price has been lowered from ₹120 to ₹116. Nescafé Classic (45gm) is now priced at ₹235, reflecting a ₹30 reduction, and Nescafé Gold is available for ₹755, a saving of ₹95.
ITC has also participated, cutting the price of 100ml Savlon from ₹400 to ₹374. A 1-liter pack of cow ghee is now ₹1,010 (down from ₹1,080), and the 956gm pack of Sunfeast Marie Light biscuits is reduced from ₹170 to ₹150.
PepsiCo’s distributor, Varun Beverages, has lowered prices on several beverages. Tropica Apple Juice (1 liter) is now ₹105 (from ₹115), 1.2-liter mango juice slice is ₹65 (from ₹70), and a 1-liter Aquafina water bottle is ₹18 (from ₹20). However, aerated drinks will maintain their current prices due to the continued 40% duty under GST 2.0. For more details, a comprehensive guide and interactive dashboard are available to help consumers navigate the new GST 2.0 rates, which officially begin on September 22.
Under the new GST 2.0 regime, the tax structure has been simplified to just two slabs: 5% and 18%, replacing the previous four-slab system (5%, 12%, 18%, and 28%). Most everyday essentials now fall under the reduced 5% slab, with the exception of detergents and cosmetics, which remain at 18%.
This means that a wide array of FMCG products, including hair oil, soaps, face powders, shampoos, toothbrushes, and toothpastes, along with nearly all food items, will now be taxed at the lower 5% rate, down from the previous 18%.
Even sweet treats are becoming more affordable! Confectionery giant Ferrero has cut the price of its beloved Nutella chocolate spread (350gm) by ₹50, now making it ₹399. Their luxurious Ferrero Rocher chocolates (300gm) are also seeing a ₹100 reduction, now priced at ₹879.
Dairy and food powerhouse Amul has likewise lowered prices across its product range, including ghee, butter, ice cream, and various snacks. Their 100gm butter pack is now ₹58 (down from ₹62), and 1-liter ghee is reduced from ₹650 to ₹610. Furthermore, Amul’s 200gm paneer will now be ₹95 (previously ₹99). Their ice cream range will also see price adjustments, starting from ₹9 (down from ₹10) and going up to ₹550 (from ₹600). Finance Minister Sitharaman has highlighted that these GST reforms are expected to put nearly ₹2 lakh crore back into the hands of the public.
According to a recent study by the industry body FICCI, GST 2.0 might initially lead to a short-term revenue loss for the government. However, this is projected to be offset by a significant boost in overall consumption, improved tax compliance, and expanded tax coverage in the long run.
Reliance Consumer Products Ltd (RCPL), one of the nation’s fastest-growing FMCG companies, has also joined the trend. They’ve reduced the price of their 1-liter cow ghee by ₹50, now at ₹750, and their Glimmer and Get Real soap packs (of 5) from ₹135 to ₹120.
Global FMCG powerhouse Procter & Gamble has also implemented price cuts across popular brands such as Vicks, Head & Shoulders, Pantene, Pampers diapers, Gillette, Old Spice, and Oral-B. Specifically, Vicks Action 500 Advance and Vicks Inhaler now cost ₹64 (down from ₹69), a direct result of the GST rate dropping from 12% to 5%.
Indian FMCG firm Emami has also decreased prices on key products including Boroplus Antiseptic Cream, Navratna Ayurvedic Oil and talc, and Zandu balm.
Finally, Hindustan Unilever Ltd (HUL), another major FMCG player, has confirmed price reductions on its wide consumer product portfolio, including Dove shampoo, Horlicks, Kissan Jam, Bru Coffee, and Lux and Lifebuoy soaps, effective September 22.