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Everything has become cheap, even cars and television sets.

The government is keeping an eye on 54 items used daily after the cut in GST rates. Out of these, price reduction of 30 items has been seen more than expected. The government is working with the industry for those things whose prices have still not come down. According to government data, prices of 54 items have decreased since the new GST rates were implemented from September 22. However, in case of 24 items, the actual price reduction is less than the government's initial estimate.

The government had asked the Central GST regional offices to monitor the changes in the prices of 54 household items like butter, ghee, cheese, powder, soap after the implementation of the revised rates.

According to information received from 21 central GST areas across the country, prices of 30 items including AC machine, television, tomato ketchup, cheese, cement have decreased more than expected. However, the prices of 24 items including notebooks, chocolates, hair oil, toothpaste, pencils, thermometers and bicycles did not decline as expected based on the reduction in GST rate. However, this assessment is based on the assumption that all other costs and benefits have remained constant during this period.

GST reduced so much

Under GST reforms, instead of four slabs of Goods and Services Tax, two slabs of 5 and 18 percent are applicable from September 22. Whereas in case of luxury goods, a special rate of 40 percent has been kept. Earlier, GST was levied at the rates of 5, 12, 18 and 28 percent. The reduction in GST rates has brought down the prices of 375 items ranging from toothpaste and shampoo to cars and television sets.

These things can be cheaper

In the case of food items, prices have fallen more than expected based on the average prices reported by different sectors, according to government data monitoring GST rates on essential commodities before and after the GST rate cut. This includes dry fruits, cheese, condensed milk, jam, tomato ketchup, soya milk drink and drinking water bottle (20 litres). GST on all these items has been reduced from 12 percent to 5 percent from September 22. However, in the case of butter, there is scope for further reduction in prices.

These things became cheaper

According to government estimates, the expected shortfall is between 6.25 to 11.02 percent, while the actual shortfall has been 6.47 percent. Finance Minister Nirmala Sitharaman said on Saturday that the benefit of cut in GST rates has been passed on to consumers through reduction in prices. He said that we will work together with the companies to reduce the prices of items whose price reduction is not as per the department's estimate. Among food items, prices of ghee, chocolate, biscuits and cookies, cornflakes, ice cream and cakes saw lower than expected cuts.

These items became the cheapest

Additionally, prices of cosmetics such as shampoo, toothbrush, talcum and face powder saw a larger-than-expected decline from September 22, while prices of hair oil, toothpaste, shaving cream and after-shave lotion saw a smaller-than-expected decline. Similarly, the prices of spectacles, contact lenses, geometry boxes, color boxes, erasers, AC machines and TV sets and tables and kitchenware have decreased more than expected. On the other hand, the prices of notebooks, pencils, crayons, sharpeners, thermometers and monitors have decreased less than the estimates of the GST department.

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