In a major announcement, the Government of India has introduced the Next-Gen GST Reform as a “Diwali Gift for the Nation.” The new GST rates aim to ease the cost of living by reducing taxes on essential food, FMCG, and kitchen items.
Key Changes in Food and FMCG GST Rates
1. Butter, Ghee, Cheese & Dairy Spreads
- Previous GST: 12%
- New GST: 5%
Everyday dairy products become cheaper, directly lowering household expenses.
2. Pre-Packaged Namkeens, Bhujia & Mixtures
Previous GST: 12%
New GST: 5%
Popular snacks and namkeens now available at reduced prices, benefiting both families and FMCG companies.
3. Hair Oil, Shampoo, Toothpaste, Toilet Soap Bar, Toothbrushes & Shaving Cream
- Previous GST: 18%
- New GST: 5%
Daily personal care products, used by every household, see a significant price drop.
4. Feeding Bottles, Napkins for Babies & Clinical Diapers
- Previous GST: 12%
- New GST: 5%
Relief for parents, with baby care essentials becoming more affordable.
5. Utensils & Kitchenware
- Previous GST: 12%
- New GST: 5%
Essential kitchen tools and cookware now cheaper, helping households save more.
Impact on Households and FMCG Sector
- Consumers: Families will save significantly on monthly groceries and household budgets.
- FMCG Companies: The sector is likely to see a boost in demand as lower prices encourage higher consumption.
- Small Businesses & Retailers: Local kirana shops and distributors benefit from increased affordability and sales.