Indian consumers can expect modest monthly savings of between ₹58 and ₹88 per person after the latest Goods and Services Tax (GST) overhaul comes into effect on September 22.
This means the consumers will be left with a slight increase in disposable income for discretionary spending on services, retail and local businesses, according to a new study released by FICCI in association with the Thought Arbitrage Research Institute (TARI).
The report, “Decoding the Journey of GST Reforms: GST and Its Effect on Economy, Business and Household Consumption”, also highlighted that the reforms will provide some relief to urban and rural households alike.
Much of the relief comes from the expansion of the lowest 5% GST slab, which now covers 149 consumer goods categories, up from just 54 earlier.
For rural household, 56.3% of their purchases that were exempt or at a merit rate earlier has now increased to 73.5%. Similarly, the exempt or merit goods share for urban households went up from 50.5% to 66.2%.
This is the direct result of changes announced by the GST Council in its 56th meeting held on September 3, 2025. The overhaul is being hailed as the “Next-Generation GST Reforms” to simplify the tax slabs and provide significant rate reductions on essential goods and services.
Tangible changes are already visible from price revisions announced by top dairy brands. For instance, the retail price of Mother Dairy’s 1-litre UHT milk will go down from ₹77 to ₹75 while 500 gram butter will get cheaper by ₹20 as price reduces from ₹305 to ₹285.
Source from: https://www.cnbctv18.com/economy/gst-reform-indian-consumers-monthly-saving-rs-58-rs-88-ficci-19678839.htm
