Govt. Slashes GST on Essential Goods, Household Items and Food Products from Sept 22

In a major relief for the common man and middle-class families, the Government of India has announced a reduction in Goods and Services Tax (GST) across multiple categories. Effective September 22, 2025, the revised GST rates aim to ease household expenses, boost consumer spending, and strengthen the Indian economy.

Key GST Rate Reductions

Some of the categories included will significantly reduce household expenses, making daily essentials more affordable for the middle class. Finance Minister Nirmala Sitharaman confirmed that everyday essentials and FMCG products will now attract a lower tax rate:

● Soaps, shampoos, toothpaste, toothbrushes, hair oil, kitchenware, and tableware: Reduced to 5% GST (from 12–18%).

● Food products such as namkeen, bhujia, sauces, pasta, noodles, chocolates, coffee, cornflakes, butter, and ghee: Now at 5% GST (earlier 12–18%).

● Ultra-high temperature milk, paneer, chena, and all Indian breads: Now completely tax-free (0% GST).

GST Relief on Electronics, Vehicles & Agriculture Equipment

To encourage demand in the consumer electronics and automobile sector, GST on televisions (above 32 inches), AC machines, dishwashers, small cars, and motorcycles has been reduced from 28% to 18%. In a major boost to the agriculture sector, GST on all agricultural equipment has been cut from 12% to 5%, supporting farmers and rural industries.

According to experts, these GST rate cuts will improve affordability, drive demand in FMCG, household essentials, and food segments, and provide relief to inflation-hit consumers. Labour-intensive industries, small businesses, and the agricultural sector are expected to benefit, while increased consumer spending may positively impact India’s GDP growth.

The Finance Minister highlighted that the decision reflects the government’s commitment to ease of living, supporting the middle class, and boosting Make in India industries.

The revised GST rates effective September 22, 2025, mark a significant step in providing tax relief on essential goods and services, making everyday living more affordable for Indian households. From FMCG and food products to electronics and agricultural tools, the GST reduction is expected to bring widespread benefits across sectors and strengthen India’s consumption-driven economy.