NEW DELHI – Prime Minister Narendra Modi has launched a nationwide “GST Savings Festival” following sweeping rate cuts on more than 375 goods and services, a reform that promises immediate relief for households and new momentum for India’s economy.

Effective from September 22 after the 56th GST Council meeting, the reductions are designed to lower living costs, stimulate consumer demand, and ease inflationary pressures. Analysts say the measures mark one of the most extensive pro-consumer tax overhauls since GST was introduced in 2017.

What Gets Cheaper

• Daily essentials: Paneer, butter, cheese, ghee, jams, pickles, and ketchup now carry minimal or zero GST, cutting prices by an estimated 3–12%.

• Personal care: Soap, shampoo, toothpaste, and hair oil will see price drops of 11–13%.

• Housing & appliances: Cement has been shifted from 28% to 18%, lowering construction costs. Home appliances like dishwashers and air conditioners are also cheaper.

• Automobiles: Smaller cars are now taxed at 18% instead of 28% plus cess, while larger models lose additional levies. Leading automakers have announced immediate price cuts.

• Insurance: Life and health insurance premiums are now GST-exempt, potentially saving families up to 15% annually.

The reform is expected to lift demand across sectors, particularly FMCG, automobiles, real estate, and insurance. Companies have pledged to pass on savings to consumers, though smaller retailers face challenges with inventory bought under older rates.

Market watchers believe the tax cuts could help sustain India’s growth momentum by spurring spending during the festive season and beyond.