New Delhi, Sept 5 — Prime Minister Narendra Modi’s Independence Day pledge of next-generation GST reforms is set to materialize this month, as the GST Council approved a major rationalisation of tax slabs on September 3. The new structure, effective from September 22, simplifies the system into just two tiers — 5% and 18% — replacing the earlier four-tier framework.
The reforms, designed with a strong focus on the common man, deliver direct savings for households by reducing GST on everyday essentials and packaged foods. Rates on hygiene products such as soap, shampoo, toothpaste, shaving cream and hair oil have been slashed from 18% to 5%.
In a major relief for families, milk, paneer, chena, roti, parantha and other breads will be fully exempted from GST, while popular items including namkeen, noodles, pasta, sauces, chocolates, coffee, cornflakes, butter and ghee will now fall under the 5% slab. Beyond food, essential goods like bicycles, kitchenware, diapers and sewing machines will also attract only 5% GST.
Union Minister for Consumer Affairs Pralhad Joshi called the move a “big relief for the poor and middle class,” while consumers welcomed the changes, saying the cuts will ease household budgets and boost purchasing power.
