GST 2.0 is being implemented from September 22, primarily featuring rates of 5 and 18 percent, while luxury products will be taxed at 40 percent. Many companies have reduced product prices to benefit customers. Significant price cuts have been observed for items like ACs, dishwashers, milk, ghee, butter, and Mahindra SUVs.
GST 2.0: Coming into effect from September 22, it will primarily feature rates of 5 and 18 percent, with special taxes applicable to tobacco and luxury goods. In light of this change, companies have lowered the prices of their products. Voltas, Haier, Daikin, LG, Godrej, and Panasonic have made ACs and dishwashers cheaper; Amul has reduced prices for milk, ghee, butter, and paneer; meanwhile, Mahindra SUVs will offer benefits of up to INR 2.56 lakh. Rail Neer has also become cheaper.
Electronic Companies Reduce Prices of ACs and Dishwashers
Companies such as Voltas, Daikin, Haier, Godrej, and Panasonic have reduced the prices of air conditioners and dishwashers. The price cuts range from a minimum of INR 1,610 to INR 8,000.
Godrej Appliances has reduced the prices of cassette and tower ACs by INR 8,550 to INR 12,450. Haier has cut prices by INR 3,202 to INR 3,905, Voltas by INR 3,400 to INR 3,700, Daikin by INR 1,610 to INR 7,220, LG Electronics by INR 2,800 to INR 3,600, and Panasonic by INR 4,340 to INR 5,500.
Companies anticipate a sales increase of over 10 percent for ACs and dishwashers during Navratri and the festive season.
Amul Reduces Prices of 700 Products
In the dairy and food sector, Amul has reduced the prices of over 700 of its products. This includes ghee, butter, bakery items, and packaged milk.
The price of ghee, previously INR 610 per kg, has been cut by INR 40. 100 grams of butter will now cost INR 58, down from INR 62. The price of 200 grams of paneer has decreased to INR 95, from INR 99. Packaged milk prices have been reduced by INR 2-3. Prior to this, Mother Dairy had also reduced prices for several products.
Significant Benefits on Mahindra & Mahindra SUVs
Mahindra & Mahindra has reduced the prices of its SUV vehicles. Additionally, the company has announced extra incentives.
Customers will save up to a total of INR 2.56 lakh on the Bolero Neo, comprising an ex-showroom price reduction of INR 1.27 lakh and additional benefits worth INR 1.29 lakh.
Railways Also Reduce Price of Bottled Water
Indian Railways has cut the price of Rail Neer. A one-liter bottle will now be available for INR 14 instead of INR 15. A half-liter bottle will be available for INR 9 instead of INR 10.
The prices of IRCTC and other branded drinking water bottles in railway premises and trains have also been adjusted to INR 14 and INR 9, respectively, in line with the new rates.
Redressal of Grievances Related to New GST Rates
The government has created a dedicated section on the InGRAM portal of the National Consumer Helpline (NCH) for the redressal of complaints related to the new GST rates.
The portal features separate categories for automobiles, banking, e-commerce, FMCG, and other sub-categories. Consumers can register their complaints and pursue resolution through the portal.
Impact on Businesses and Customers
The implementation of the latest GST 2.0 rates will directly benefit customers in the market. With reduced prices for electronic goods, dairy products, and vehicles, a surge in purchasing is expected during the festive season.
The price reduction initiatives by companies will enhance consumers' purchasing power. Concurrently, the government has ensured that the benefits of the new rates are properly passed on to customers.
