India Celebrates 'Bachat Utsav' as Major GST Reform Slashes Prices
India’s GST reform, touted as the biggest in 75 years, reduces four tax slabs to two: 5% and 18%, making essential goods more affordable. Brands like Amul and Mother Dairy cut prices, offering relief to consumers. The overhaul aims to boost various industries and broaden the tax base.
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In a landmark move, India has revised its Goods and Services Tax (GST) structure, cutting down from four to two principal categories: 5% and 18%. Announcing this, Union Minister Pralhad Joshi hailed the reform as the country's most significant in 75 years, dubbing it 'Bachat Utsav' celebrated nationwide.
Joshi emphasized his expectation that reduced rates be fully passed on to consumers. To ensure compliance, a dedicated helpline has been launched. This restructuring, ratified at the GST Council's 56th meeting, promises lower consumer prices, smoother compliance, and benefits spanning sectors from agriculture to automotive.
The change, which maintains a 40% slab for luxury goods, is set to reduce living costs and support MSMEs and wider industry growth, including the FMCG sector where companies like Amul and Mother Dairy have notably reduced prices.
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