GST changes from Sept 22: With just two rates—5 percent and 18 percent—the updated Goods and Services Tax (GST), which was announced earlier this month, will go into force tomorrow. Only pan masala, cigarettes, sugar-sweetened aerated water, carbonated drinks, and comparable products are eligible for the extra 40 percent tariff.
Additionally, Nirmala Sitharaman, the minister of finance, declared that a large number of middle-class electrical devices, such as televisions, air conditioners, and certain motorcycles, have been shifted to the 18 percent slab.
The impact of these adjustments on consumers has been uneven. Some everyday necessities have seen price reductions, which has helped families who are already having trouble keeping up with inflation. However, the cost of several lifestyle, luxury, and leisure items has increased, making many people reevaluate their spending patterns.
Although they are keeping a careful eye on consumer demand in the upcoming weeks, Bengaluru traders and retailers report that the changeover has gone smoothly thus far.
What is more affordable and what is more costly for customers
What is Cheaper:
Everyday essentials, including packaged food, edible oils, and household cleaning products
Public transportation services, such as app-based auto and cab rides within the city
Small electronic items such as chargers, earphones, and USB cables
Medications for common ailments and select medical devices
What is Expensive:
Meals at restaurants, especially at air-conditioned and premium outlets
Consumer durables, including refrigerators, washing machines, and air-conditioners
Beauty and beauty services at salons and spas
Premium smartphones and imported gadgets
Reasons to Verify MRPs Again
The Department of Consumer Affairs has released an updated advisory to assist companies in adapting to GST modifications, although local retailers might encounter some confusion. Products made prior to September 22nd may display both the previous and newly adjusted MRPs, potentially resulting in inflated prices.
For instance, a biscuit packet that originally had an MRP of ₹50 might now show a price of ₹48, but some sellers could still charge more. Companies are not obligated to publicize the revised maximum retail price (MRP) in newspapers; instead, they only need to provide updated price lists to their dealers, along with sending copies to the relevant metrology authorities. Old packaging can still be used if adjustments are made with stickers, stamps, or digital printing until March 31st, 2026.
Consumers are encouraged to check prices thoroughly.