As the clock ticks past midnight on September 22, GST 2.0 comes into effect, bringing sweeping tax cuts across more than 375 common-use goods. The move, following the 56th GST Council meeting earlier this month, has already triggered a wave of discounts across FMCG and household brands, ensuring that lower prices are here to stay.
Companies Pass On the Benefits
To woo customers ahead of the rollout, companies have offered steep discounts, free vouchers, and extra grammage. The government has made it clear that corporates must pass on the full benefit of reduced GST rates to end consumers, with the Finance Ministry’s officers tasked to track monthly price changes. While smaller enterprises and auto dealers have flagged transitional issues like unused input tax credits, early signs suggest that most major players are passing the benefits along.
FMCG Takes the Lead
Food items, in particular, are seeing sharp price drops. Amul and Mother Dairy have cut paneer prices by 3 per cent, with 200gm packets now selling for ₹92. UHT milk cartons are also cheaper by ₹2-3 per litre. Packaged snacks and ready-to-eat foods are witnessing even bigger cuts: Amul cheese onion paratha has seen its price slashed from ₹240 to ₹200, while Pringles chips (107 gm) now retail for ₹110 — a 12 per cent drop.
Kellogg’s has followed suit, with a 900gm box of original corn flakes now costing ₹355, down 11 per cent from ₹399. Similarly, Sunfeast Marie Light biscuits are 12 per cent cheaper for near-1kg packs. Ice creams, too, have melted in price, with Mother Dairy’s 50 ml vanilla cup now at ₹9 instead of ₹10, and a 100 ml Butterscotch cone dropping to ₹30 — 14 per cent lower.
Household Essentials Become Affordable
Beyond food, household essentials like shampoo, soaps, toothpaste, and hair oils have also been moved from the 18 per cent GST slab to 5 per cent. Brands like L’Oréal, Himalaya, Dove, and Close-Up have announced 11–13 per cent price reductions, directly easing household budgets.
