GST 2.0: From Soaps To A New Car! 5 Reasons Why Your Bills Will Drop This Festive Season?

This festive season, shoppers are in for some relief as prices on groceries, daily essentials, and home appliances are set to fall.

Leading FMCG companies and the government’s GST rate cut on electronics are combining to make your festive shopping lighter on the wallet.

Here are five reasons why your bills could be lower this year.

GST Cuts on Household Essentials

The Goods and Services Tax (GST) Council has simplified tax slabs from four to two tiers, 5% and 18%. Most daily essentials, including soaps, shampoo, hair oil, toothpaste, and food items, are now under the 5% slab.

This reduction directly lowers retail prices, helping consumers save on routine grocery and personal care shopping.

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Immediate Price Reductions by FMCG Companies

Leading FMCG players like Dabur, ITC, Nestle, HUL, Procter & Gamble, Amul, RCPL, and Emami have revised their MRPs. Dabur has cut Real Juice (1 litre) from Rs 130 to Rs 122, Chyawanprakash (900 gm) from Rs 475 to Rs 440, and toothpaste from Rs 153 to Rs 135.

Nestle has reduced Maggi noodles (600 gm) to Rs 116 and Nescafé Classic (45 gm) to Rs 235.

Amul has lowered butter (100 gm) to Rs 58 and ghee (1 litre) to Rs 610. These reductions will directly reflect on store shelves and e-commerce platforms.

Discounts for Festive Shopping

FMCG companies are offering special festival discounts on food items and confectionery. From sweets and namkeen to chocolates and coffee, brands like Ferrero, Amul, and ITC are slashing prices to boost festive sales.

Ferrero has reduced Nutella (350 gm) by Rs 50 and Ferrero Rocher (300 gm) by Rs 100, while Amul has discounted paneer and ice cream across multiple varieties.

GST Cuts on Electronics and Appliances

Apart from FMCG items, GST 2.0 also brings significant relief on home appliances. Televisions, air conditioners, refrigerators, dishwashers, and washing machines previously taxed at 28% now attract 18% GST.

Buyers can save between Rs 1,500 and Rs 2,500 on air conditioners and dishwashers, and prices for TVs and refrigerators will drop substantially.

Mid-range and premium televisions, in particular, will see notable reductions, making them more affordable for festive shoppers. Mobile phones and laptops remain at 18% GST, so no price change is expected for these categories.

GST Cuts On Automobile Sector

The GST Council has cut indirect taxes on small cars, motorcycles, and bigger vehicles to make them more affordable. Small cars under four metres with engines below 1200cc (petrol) and 1500cc (diesel) will now attract 18% GST, down from 28–31%. SUVs and bigger vehicles will now pay 40% tax instead of 43–50%. Motorcycles with engines below 350cc also move to the 18% slab.

The previous 12% and 28% tax slabs have been removed, leaving only 5%, 18%, and 40% for luxury or sin goods.

Automakers are passing on these savings to buyers. Price cuts range from around Rs 40,000 on small hatchbacks to up to Rs 30 lakh on premium SUVs. Popular models, from Maruti Suzuki budget cars to Range Rover luxury SUVs, as well as two-wheelers like Honda Activa and Shine, will now be cheaper, giving buyers a big festive-season benefit.