PM Modi calls GST cuts a ‘Bachat Utsav’: From food to cars, what gets cheaper in India. All you need to know
&imwidth=600&imheight=450&format=webp&quality=medium "PM Modi calls GST cuts a ‘Bachat Utsav’: From food to cars, what gets cheaper in India. All you need to know")
‘Bachat Utsav’: Modi says GST cuts will put ₹2.5 lakh crore back in people’s pockets Photograph: (Combination created using images from ANI and Unsplash)
Effective today, new GST rates will make many products and services cheaper. Calling it a "Bachat Utsav," or savings festival, Prime Minister Modi said that it will put ₹2.5 lakh crore back in people's pockets. Here's what will get cheaper.
India will see a major shift in prices starting today (Monday, Sep 22) as the new GST rates kick in. Prime Minister Narendra Modi, addressing the nation on Sunday (Sep 21), called it nothing less than a “Bachat Utsav” (savings festival), claiming the combined impact of tax reforms and GST cuts will put nearly ₹2.5 lakh crore back into people’s pockets.
Everyone to benefit, says Modi
According to Modi, the recent income tax changes have already helped the middle class, and the new GST revisions will now extend relief to the poor and the neo-middle class. He said that people will now be able to spend money on what they wish for. “From youth, farmers, and women to shopkeepers, traders, and entrepreneurs—everyone will gain from this Bachat Utsav. This festive season, every family will have something to celebrate,” he said.
So, what exactly gets cheaper with the GST reforms? Here’s the lowdown:
Home appliances
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Split air conditioners will cost between ₹2,800 and ₹5,900 less, while window units get cheaper by roughly ₹3,400. Dishwashers, once seen as luxury products, will drop by as much as ₹8,000. Big screen TVs, especially premium models above 65 inches (165.1 cm), see price cuts ranging from a few thousand rupees to over ₹85,000 for the largest sets.
Everyday grooming needs
Items like soaps, shampoos, hair oil, toothpaste, and shaving creams move to the 5 per cent tax slab. Baby diapers, nappies and feeding products also become more affordable.
Everyday household needs
For the kitchen, ghee, butter, paneer, chocolates, sauces, and even instant noodles will see noticeable price drops. Ultra-high temperature milk and Indian breads like chapati, roti, and parantha are now completely tax-free.
Healthcare
Thirty-three lifesaving drugs lose their tax burden entirely, while many others see rates cut from 12 per cent to 5 per cent. Diagnostic kits, surgical tools, and medical devices also get cheaper. Perhaps the most impactful change in this reform is that life and health insurance policies are now fully exempt from GST, cutting costs for millions of families.
Vehicles
From scooters and commuter bikes to compact SUVs, price reductions stretch from a few thousand rupees to several lakhs. Budget hatchbacks could be ₹40,000-75,000 cheaper, while luxury SUVs may see price cuts exceeding ₹4 lakh. Even commercial vehicles like buses and ambulances benefit, which may ease transport costs more broadly.
Other sectors
Cement prices fall as the GST rate drops to 18 per cent, a big relief for home builders and infrastructure projects. Farmers benefit from cheaper tractors and fertiliser components.
Hotels
Hotel rooms priced below ₹7,500 a night now attract only 5 per cent GST.
School supplies: Students will also save on essentials like pencils, crayons, sharpeners, and exercise books, all of which are moved to the tax-free slab.
