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Hindustan Unilever Limited (HUL) has announced a big cut in the prices of many of its famous products. Everyday items like dove shampoo, farmer jam, horlix, lux soap and lifeboy soap will now become cheap by 15%. These new prices will be applicable from 22 September 2025. But the question is, why did Hul do this? Let’s know the whole story behind it.

GST changes in GST, prices reduced

In the 56th meeting of the GST Council on 3 September 2025, the government decided to make the tax structure easier. The first GST had three slabs – 5%, 12%and 18%. But now the 12% slab has been completely removed. Now only two slabs – 5% and 18% – will remain. Due to this change, many everyday items like UHT milk, cheese and jams have either been exempted from GST or they have been put in 5% tax slab. The special thing is that GST has been reduced from 18% to 5% on soap, shampoo and toothpaste. The government clearly says that the benefit of this tax deduction should reach customers directly. For this reason, HUL decided to reduce the prices of its products.

Exemption to change MRP of old stock

The government has allowed companies to change the maximum retail price (MRP) of their old stock before the new GST rates to be implemented from 22 September. Manufacturers, packers and importers will now be able to put new prices on old goods through stamps, stickers or online printing. The Consumer Affair Department of India issued an order on Tuesday stating that the exemption will remain in force till 31 December 2025 or till the old stock is over. However, companies will also have to show old MRP with new prices, so that customers get transparency.

Tax will increase on luxury goods

While everyday items are becoming cheap, the prices of luxury items and tobacco products may increase. Now these will be 40% GST instead of 28%. Medium and big cars, motorcycles with engine more than 350cc will come in this new tax slab. This is sure to increase their prices.