Starting September 22—the first day of Navaratri—several items of daily use will become cheaper as the GST Council’s new rates come into effect. Union Finance Minister Nirmala Sitharaman said the decision to reduce GST on key essentials to nil will provide relief to households while boosting consumer spending across the economy.
Kitchen Staples and Breads at Nil Tax
Daily kitchen items, once taxed, will now be available without GST, including:
- Ultra-High Temperature (UHT) milk
- Prepackaged and labelled chena or paneer
- All Indian breads such as chapati, roti, paratha, and parotta
- Pizza bread
- Khakhra
This reduction is expected to significantly cut food bills, especially for urban households that depend on packaged dairy and bakery products.
Life-Saving Medicines Exempted
Healthcare will see a direct benefit as 33 lifesaving drugs and medicines are now tax-free. Additionally:
- Three medicines used for cancer, rare diseases, and other chronic conditions are included in the exemption.
This measure is designed to ease financial burdens on patients and families who depend on high-cost treatments.
Stationery and Education Essentials Made Cheaper
In a big relief for students and schools, GST has been scrapped on a wide range of stationery and learning tools:
- Erasers
- Uncoated paper and paperboard for exercise books
- Notebooks, graph books, and laboratory books
- Maps, hydrographic charts, and atlases
- Globes and topographical plans
- Pencil sharpeners, pencils (including mechanical types)
- Crayons, pastels, chalks (writing, drawing, tailor’s)
- Drawing charcoals
These cuts will make education-related expenses more affordable for families.
Companies Pass on Benefits
Brands like Amul and Mother Dairy have already slashed prices on hundreds of products, from butter and paneer to ice cream. Price cuts range between ₹2 and ₹30 depending on the product. However, Amul confirmed that milk prices remain unchanged.
Why It Matters
The shift to Nil GST on essentials is expected to directly lower household expenses, leaving consumers with more disposable income. If fully passed on, the rate cuts can significantly reduce monthly budgets and spur demand across the economy.
