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GST Rate Cut :The government has recently cut GST rates, following which the prices of 54 daily essential commodities are being closely monitored. The good news is that the prices of 30 of these things have come down more than expected. But, the prices of 24 items have still not reduced as per the government’s estimate.

The government is now working with industries to further reduce the prices of these things. According to government data, after the implementation of new GST rates from September 22, a decline in prices of 54 items has been seen.

GST reduced so much

Under the GST reforms from September 22, instead of four slabs (5%, 12%, 18%, 28%), now two slabs (5% and 18%) have been implemented. A special rate of 40% has been kept on luxury goods. This change has reduced the prices of 375 items like toothpaste, shampoo, car, and television sets. The government had directed Central GST regional offices to keep an eye on the prices of 54 everyday items like butter, ghee, cheese, soap, and tomato ketchup.

These things became the cheapest

According to information received from 21 central GST areas of the country, prices of 30 items like AC machines, television sets, tomato ketchup, cheese, and cement have decreased more than expected. Especially among food items, GST on items like dry fruits, condensed milk, jam, soya milk drink, and 20 liter drinking water bottles was reduced from 12% to 5%, due to which their prices have reduced significantly. But there is still scope for further reduction in the price of butter.

Prices of these things decreased, but less than expected

According to government estimates, prices of some items should have declined by 6.25% to 11.02%, but in reality the average decline was only 6.47%. Finance Minister Nirmala Sitharaman said on Saturday that the benefits of cut in GST rates have been passed on to consumers. However, prices of items like chocolate, ghee, biscuits, cornflakes, ice cream, and cakes saw lower than expected price cuts. The government will now work with companies to further reduce their prices.

How much change in beauty and home goods?

The prices of cosmetics like shampoo, toothbrush, talcum powder, and face powder have come down significantly since September 22. At the same time, the prices of hair oil, toothpaste, shaving cream, and after-shave lotion have decreased less than expected. Similarly, a good decline was seen in the prices of spectacles, contact lenses, geometry boxes, AC machines, television sets, and kitchenware. But the prices of notebooks, pencils, crayons, sharpeners, thermometers, and monitors have declined less than the government had estimated.