In a significant update, Finance Minister Nirmala Sitharaman announced on Saturday, October 18, 2025, that the positive effects of recent GST reforms are indeed translating into lower prices for consumers. She emphasized that the government is diligently tracking the price adjustments of 54 specific items nationwide since the implementation of reduced GST rates on September 22.
During a press conference held as part of the “GST Bachat Utsav,” the Finance Minister highlighted that these GST rate reductions have spurred an increase in consumer purchases, indicating a successful and ongoing consumption drive. She expressed confidence that businesses are consistently passing on these benefits to their customers across various product categories.
Interestingly, for some products, companies have even exceeded expectations by passing on savings greater than the average GST rate cut. This demonstrates a commitment by some businesses to fully realize the intended consumer benefits.
However, the Department of Consumer Affairs has also registered 3,169 complaints regarding instances where price reductions did not align with the GST cuts. Out of these, 3,075 complaints have been escalated to nodal officers within the Central Board of Indirect Taxes and Customs (CBIC), with 94 already resolved by the department.
To further streamline the grievance redressal process, Ms. Sitharaman stated that the department plans to introduce a new feature on its reporting portal. This will allow complaints to be directly routed to the chief commissioners in the relevant zones, ensuring more efficient and localized resolution.
These new, lower GST rates, which took effect on September 22, have led to significant price reductions across a wide array of 375 items. Products ranging from everyday essentials like toothpaste and shampoo to larger purchases such as cars and television sets are now more affordable. The reform involved simplifying tax slabs, consolidating the previous rates of 5%, 12%, 18%, and 28% into just two categories: 5% and 18%. This restructuring has effectively lowered the cost of 99% of daily use items, making them more accessible to the average consumer.