Various FMCG companies have already announced reduction in prices in view of GST rationalisation

PTINew Delhi

Prices of kitchen staples to electronics, from medicines and equipment to automobiles, will get cheaper from Monday as reduced GST rates on about 375 items come into effect.In a bonanza to consumers, the GST Council, comprising Centre and states, decided to reduce tax rates on goods and services, from September 22 -- the first day of Navaratri.

In his address to the nation on the eve of rollout of the new reduced tax rates, Prime Minister Narendra Modi said, "GST bachat utsav (savings festival)", coupled with the hike in income tax exemption to Rs 12 lakh given in the Budget, will be a "double bonanza" for people.

From Monday, mass consumption items like ghee, paneer, butter, 'namkeen', ketchup, jam, dry fruits, coffee and ice creams, and aspirational goods like TV, AC, washing machines will become cheaper.Various FMCG companies have already announced reduction in prices in view of GST rationalisation.

With GST on most drugs and formulations, and medical devices like glucometers and diagonistic kits reduced to 5 per cent, the cost of medicines will come down for the common man. Also, home builders will benefit as GST on cement has been cut to 18 per cent, from 28 per cent.

Soaps, powder, coffee, diapers, biscuits, ghee, oil to be cheaper Daily essentials and food products will be cheaper from Monday, as leading FMCG companies have slashed prices, extending GST cut benefits to consumers. 

The move is expected to lead to a spike in consumption and a surge in sales during the upcoming festival season, which starts with the Navratra celebrations. FMCG companies have extended benefits of GST 2.0 with immediate reduction on price without any disruption, along with some discounts for festivals as they expect to enter a new growth phase after facing a few challenging quarters that saw persistent food inflation and slow pace of urban consumption.

Companies operating in the space of FMCG products have issued revised price lists with new MRPs on their products, including soaps, shampoo, baby diapers, toothpaste, razors, and after-shave lotions, effective from September 22.

Car, bike makers roll out price cuts Buyers are in for a bonanza with leading automakers Maruti Suzuki, Tata Motors and Hyundai Motor India set to cut prices from Monday, coinciding with the first day of the auspicious Navaratri period. Mercedes-Benz and BMW as well as two-wheeler makers are set to reduce prices with new GST coming into force from today.

Maruti Suzuki India has cut vehicle prices by up to Rs 1.29 lakh to pass on the GST rate cut benefit to customers. The company has also decided to cut prices of its small cars over and above the GST benefit of 8.5% to make vehicles attractive.

The prices of entry-level model S Presso will go down by up to Rs 1,29,600; Alto K10 by up to Rs 1,07,600; Celerio by Rs 94,100; Wagon-R by up to Rs 79,600 and Ignis by up to Rs 71,300. 

Price of premium hatchback Swift is reduced by up to Rs 84,600; Baleno by up to Rs 86,100; Tour S by up to Rs 67,200; Dzire by up to Rs 87,700; Fronx by up to Rs 1,12,600; Brezza by up to Rs 1,12,700; Grand Vitara by up to Rs 1.07 lakh; Jimny by up to Rs 51,900; Ertiga by up to Rs 46,400 and XL6 by up to Rs 52,000.