The wait is over! Today marks a significant shift for Indian consumers as revamped Goods and Services Tax (GST) rates kick in, promising to make a host of products and services more affordable. From everyday kitchen essentials and medicines to modern electronics and automobiles, a total of 375 items are set to see their prices drop.
This consumer-friendly move, decided by the GST Council (comprising both Central and State representatives), coincides with the auspicious first day of Navaratri, adding a celebratory feel to the economic relief.
Prime Minister Narendra Modi, in a national address on Sunday (September 21, 2025), enthusiastically hailed these changes as “next generation reforms.” He joyfully declared it a “GST Savings Festival,” expressing his confidence that these adjustments would “bring happiness to every family” by reducing the cost of living for the poor, middle, and aspiring middle classes. The Prime Minister also took the opportunity to emphasize the importance of buying Indian-made goods, aligning these reforms with the “Swadeshi mantra” to bolster the nation’s economic self-reliance and support Micro, Small, and Medium Enterprises (MSMEs).
However, the new GST regime has not been met with universal acclaim. On Sunday (September 21, 2025), the Congress party criticized Prime Minister Modi for apparently claiming “sole ownership” of the GST amendments. They deemed the current reforms insufficient, particularly highlighting the unresolved demand from states for a five-year extension of GST compensation. Congress president Mallikarjun Kharge expressed his strong disapproval on social media, reminding the public of previous instances where the government imposed high GST on essential items like dal-chawal (lentils and rice), grains, pencils, books, medical treatments, and even farmers’ tractors.
The core of these reforms involves simplifying the GST structure from a four-slab system to a two-slab system, aiming for easier compliance and, crucially, lower prices for consumers. This simplification promises substantial savings on a variety of popular items, including daily necessities like ghee, paneer, butter, ‘namkeen’, ketchup, jam, dry fruits, coffee, and ice creams. Additionally, aspirational purchases such as televisions, air conditioners, and washing machines are also expected to become more budget-friendly.
This major tax overhaul represents a pivotal moment for India’s economy and its consumers, aiming to ease financial burdens and stimulate domestic consumption.