Food, clothing, electronics, and agricultural equipment will become cheaper with the GST cut implemented from September 22. There will be no change in domestic LPG cylinder prices. This move is expected to provide some relief to the common public in their daily expenses.
GST: The GST (Goods and Services Tax) cut is set to be implemented in the country from September 22. The GST Council, in its meeting on September 3, approved new GST Reforms, under which the 12% and 28% slabs have been removed, retaining only the 5% and 18% slabs.
Following this change, the prices of everyday necessities such as essential food items, clothing, electronic goods like TVs and ACs, automobiles, agricultural equipment, and health products will start to decrease. The general public is eager to know if LPG cylinder prices will also fall and what impact this change will have on their pockets.
Impact on LPG Cylinders
Although GST rates have been cut for many items, no change has been made to LPG cylinders. Currently, a 5% GST is levied on domestic cylinders, while an 18% GST applies to commercial cylinders. The GST Council has not announced any rate changes for LPG, so LPG cylinder prices will remain unchanged even from September 22. Domestic cylinders are primarily used for cooking in households, whereas commercial cylinders are for business use, such as in hotels and restaurants.
Which Items Will Become Cheaper?
Under the GST Reform, from September 22, prices of items such as food items, healthcare products, daily necessities (FMCG), clothing, educational materials, electronic goods, agricultural equipment, and insurance will be reduced. Additionally, automobiles and other consumer goods will also benefit from this cut. On the other hand, the GST rate on 'sin products' like tobacco and cold drinks has been increased to 40%, and GST has also been raised on super luxury cars. This decision has been taken to reduce the daily expenses of the general public and to control inflation.
Why is there 18% GST on Commercial Cylinders?
An 18% GST has been applied to commercial cylinders because they are used for commercial purposes. Hotels, restaurants, and other commercial establishments use these cylinders. Domestic cylinders fall under the 5% GST slab, which keeps the burden on ordinary households relatively lower. Despite no change in LPG prices, the reduced cost of other essential items is likely to provide some relief to household budgets.
Market Impact
The decisions taken in the GST Council meeting will start showing their effect on the market from September 22. Consumers will feel relief due to the reduction in prices of daily-use items, while some specific items like tobacco and super luxury cars will become more expensive. Despite no relief for LPG cylinders, this move is considered positive for the general public.
