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The government has announced major reforms in the GST slab, which will come into effect from 22 September 2025. These tax reforms are going to reduce the prices of many items of everyday use by about 10-15%. Essential household items like biscuits, soap, noodles, coffee, and butter will now be available cheaper than before. This change is relief news, especially for those who were cutting down on expenses due to inflation.

Big impact on daily items

In the new GST rates, tax on things like butter, cheese, sweets, and salty snacks has been reduced from 12% to just 5%. At the same time, tax on chocolate, biscuits, cornflakes, coffee, ice cream, bottled water, hair oil, shampoo, soap, shaving cream, and toothpaste has been reduced from 18% to 5%. This means that now all these things will be cheaper, and the purchase of household items will also be affected. However, the tax on sugary drinks has been increased from 28% to 40%. But these changes are mostly going to reduce the prices of essential household items.

FMCG companies will benefit

Big FMCG companies like Hindustan Unilever, Britannia, Dabur, Marico, ITC, and Nestle are expected to benefit from this change. The demand for the products of these companies is likely to increase because people will buy more due to lower prices. This will also increase competition in the market.

It will also affect business and the supply chain.

It is believed that these reforms will reduce the pressure on business and strengthen the supply chain. With this, small sellers and distributors will also be able to work better. Also, shopkeepers will no longer have much trouble with the availability and prices of goods.

The common man will get relief from inflation.

Due to rising inflation for some time, the burden on the people had increased. Especially, the FMCG sector was witnessing a slowdown because consumers had started reducing expenses. Now with the reduction in GST, these goods will become cheaper, and people's shopping will improve. Experts believe that this change is not only beneficial for consumers but will also prove to bring new energy to the market. Both small and big businesses will benefit from this and economic activity will improve.

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