The Union Finance Minister, Nirmala Sitharaman, has announced a major revision in the Goods and Services Tax (GST) structure following the 56th meeting of the GST Council, which has brought significant relief to consumers across the country. Among the most notable changes is the decision to lower the GST on televisions. Earlier, TVs larger than 32 inches were subject to a steep 28% tax, but under the new system, they will now be taxed at only 18%. This reduction, which comes into effect from September 22, the first day of Navratri, is expected to make televisions more affordable and accessible for a broader section of the population, while also giving a boost to the electronics market.
The reforms are not limited to televisions alone. Other consumer durables such as air conditioners, dishwashing machines, small cars, and motorcycles with engine capacities up to 350cc have also been shifted from the higher 28% tax bracket to the more moderate 18% slab. By doing so, the government has aimed to reduce the financial burden on households while simultaneously simplifying the tax regime. The revised structure abolishes the earlier 12% and 28% slabs, replacing them with a more streamlined two-tier framework of 5% and 18%, while introducing a higher 40% slab for sin and luxury goods. This marks one of the most comprehensive reforms in the GST system since its introduction in 2017.
While announcing these sweeping changes, Sitharaman emphasized that the primary focus of the reforms was the welfare of the common citizen. She explained that the Council had carefully reviewed taxes on daily essentials and household products to reduce costs wherever possible. In her words, the reforms were designed “with the common man in mind,” reflecting the government’s intention to make essential goods more affordable while ensuring simplicity in taxation.
In addition to household appliances and vehicles, a wide range of everyday essentials has also been placed under lower tax brackets. Products like hair oil, toilet soaps, shampoos, toothbrushes, toothpaste, bicycles, tableware, and kitchenware will now attract only 5% GST, making these necessities cheaper for families. The government has also decided to completely exempt ultra-high temperature (UHT) milk, paneer, chena, and all varieties of Indian breads, such as roti and paratha, from GST, bringing their tax rate down from 5% to zero. This exemption is expected to reduce the cost of staple foods and ease the strain on household budgets.
Furthermore, several packaged and processed food products have seen their prices slashed significantly. Items such as namkeen, bhujiya, sauces, pasta, instant noodles, chocolates, coffee, preserved meat, cornflakes, butter, and ghee have now been brought into the 5% slab from their earlier 12% or 18% categories. This step will make many popular food items more affordable for the average consumer, providing relief at a time when food prices have been a concern for many households.
The two-day GST Council meeting, chaired by the Finance Minister, began on September 3 and is scheduled to conclude on September 4. These decisions represent one of the most ambitious tax overhauls in recent years, balancing the need for revenue with the government’s commitment to easing consumer expenses, supporting industries, and boosting overall economic activity.
