The Goods and Services Tax (GST) 2.0 reform will begin on September 22, 2025. Companies are moving fast to cut costs before the official rollout, aiming to boost buying and create positive buzz. This means that the consumers have already started getting better deals on everyday products, as reported by the Times of India.
Major players in the Fast-Moving Consumer Goods (FMCG) world, like Procter & Gamble (P&G) and Hindustan Unilever Ltd (HUL), have already started sending out products with new, lower price tags. They are even absorbing some of the tax difference themselves right now to kickstart this consumer-friendly change.
The government has simplified the GST into three main categories: 5%, 18%, and 40%.
The biggest change is that 99% of products previously in the 12% tax bracket will now move to the lowest 5% slab.
This includes common food items like butter, cheese, confectionery, and savory snacks. Even better, personal care items such as soaps, toothpaste, and shampoo are dropping from a high 18% to the 5% slab.
FMCG companies are being proactive. Some have already started displaying products with lower prices at retail stores. They are trying to avoid a last-minute rush and tap into positive buyer sentiment.
P&G cut prices on popular items, including Head & Shoulders and Pantene shampoos, Pampers diapers, Gillette, Old Spice, and Vicks products. HUL price drops occurred for items like Dove and Clinic shampoos, Lux and Lifebuoy soaps, Bru coffee, and Kissan jam.
Larger product packs with the reduced prices are starting to reach stores before the official GST reform week begins.
Online shopping platforms are also getting in on the action! Quick-commerce services are passing on the GST 2.0 savings early to attract customers:
Swiggy Instamart announced it was ‘unlocking GST savings early.’ Amazon Now launched a big campaign promoting up to ‘Rs. 25,000 annual savings for shoppers. These early moves by companies and online platforms are a clear strategy to gain a first-mover advantage ahead of the official tax switch.
Also Read: GST 2.0 Overhaul: Who Wins and Who Loses Under India’s Biggest Tax Reform Yet?
This change is a big deal for a common man’s family budget. With essentials moving to the lowest tax bracket, households will see their disposable income potentially increase. Companies are betting on these lower prices to boost consumption after a tough period of inflation. This reform is designed to make daily life more affordable for everyone.