India to Slash GST Rates on Consumer Products
India may reduce GST by 10 percentage points on 175 products such as shampoos and hybrid cars, potentially boosting sales for major brands. The decision will be finalized by the GST council in early September.
India plans to implement a significant tax overhaul by cutting the Goods and Services Tax (GST) by 10 percentage points on nearly 175 products, including shampoos, hybrid cars, and consumer electronics, according to sources privy to the proposal. This major reform by Prime Minister Narendra Modi aims to stimulate consumer spending.
The revised tax rates suggest a reduction from 18% to 5% for consumer goods like talcum powder and shampoo, potentially benefiting companies such as Hindustan Unilever and Godrej Industries. Moreover, consumer electronics such as air conditioners and televisions could see taxes cut from 28% to 18%, just in time for the Diwali shopping season.
Small petrol hybrid cars may also benefit from a tax cut to 18% from 28%, scoring a win for manufacturers like Toyota Motor and Maruti Suzuki. The GST council, led by Finance Minister Nirmala Sitharaman, will finalize the list of reduced-tax goods and services on September 3-4.
(With inputs from agencies.)
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