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From groceries and gadgets to eating out, the GST Council’s sweeping tax cuts promise relief for households this festive season.
PM Narendra Modi (Photo: YouTube/NarendraModi)
This year’s festive season may truly sparkle for Indian households, with the GST Council’s sweeping tax cuts promising cheaper essentials, gadgets, travel and even meals out. The relief comes weeks after Prime Minister Narendra Modi, in his Independence Day speech, pledged that the government would ease household expenses and boost consumer sentiment before the festive months.
PM Modi’s Promise Delivered
By collapsing the four GST slabs into two- scrapping the 12% and 28% rates and retaining only 5% and 18%- the GST Council has delivered one of the most consumer-friendly resets since the tax’s rollout in 2017. The new rates, effective September 22, 2025, align with the festive shopping rush, offering immediate relief to families planning celebrations.
Read more: Big Appliances To Cost Less: GST Council Slashes Rates On ACs, TVs, Dishwashers
Prime Minister Modi welcomed the reforms, calling them “next-generation GST changes.”
“During my Independence Day Speech, I had spoken about our intention to bring the next-generation reforms in GST. The Union Government had prepared a detailed proposal for broad-based GST rate rationalisation and process reforms, aimed at ease of living for the common man and strengthening the economy. Glad to state that @GST_Council, comprising the Union and the States, has collectively agreed to the proposals… which will benefit the common man, farmers, MSMEs, middle-class, women and youth. The wide ranging reforms will improve lives of our citizens and ensure ease of doing business for all, especially small traders and businesses,” PM Modi posted on X (formerly Twitter).
Read more: From Shampoo To Hair Oil, Everyday Items Set To Cost Less After GST Cuts
What Gets Cheaper For Festivals
Kitchen staples: Milk, paneer, butter, cheese, pasta, biscuits, jams, sauces, namkeens and ice cream all move to lower tax slabs, making festive feasts more affordable.
Personal care and gifts: Shampoos, soaps, toothpaste, hair oil, talcum powder and shaving products will now carry just 5% GST. Toys, handicrafts, sports goods and even candles will also get cheaper, helping families stock up on gifts and decor.
Big-ticket buys: For households eyeing upgrades, air-conditioners, dishwashers and TVs (including LED and LCD models, projectors and set-top boxes) have all moved down from 28% to 18%. Retailers expect the cut to fire up sales during Diwali and Christmas.
Eating out and holidays: Dining at restaurants will now be taxed at just 5%, bringing down the cost of festive meals outside home. Hotel stays too get cheaper as rooms priced under ₹7,500 per night will attract only 12% GST, while budget stays under ₹1,000 remain GST-free- giving families more room to plan getaways and gatherings.
- Location :
Delhi, India, India
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