Winning Bizness Desk
Mumbai.The Goods and Services Tax Council has revised tax slabs, reducing four categories to only two, 5 percent and 18 percent. This change, effective September 22, is expected to bring relief to families by lowering prices of everyday goods like soap, shampoo, and food items, as well as bigger purchases such as small cars and air conditioners. The move is aimed at making household budgets more manageable.
Survey reveals 63 percent troubled by inflation
Despite the GST changes, a recent PwC report shows that 63 percent of Indian customers are still troubled by rising inflation. Families have been particularly hit by increasing food costs. Many households are finding it hard to manage expenses, with 7 percent saying they are struggling to cover daily bills.
Consumers change habits to fight inflation
To cope with inflation, families are adapting their shopping habits. The survey highlighted that 44 percent of respondents are now buying items in bulk, while the same proportion are growing vegetables and other essentials at home. This reflects how rising costs are forcing households to adjust their lifestyle and spending patterns.
New buying strategies adopted by households
Almost half of the families surveyed have changed their shopping methods. They are visiting multiple shops to compare prices, looking for discounts, and making greater use of coupons and special offers. These strategies are helping families stretch their budgets further while dealing with food inflation.
Struggles of financially unstable families
The survey found that 32 percent of customers consider themselves financially stable. However, 7 percent admitted they are not in a good position and face problems paying their bills. For such families, the GST changes are especially important as they may provide some breathing space in managing household expenses.
Key goods to become cheaper from reforms
The GST rate on cement has been cut from 28 percent to 18 percent, which will reduce home construction and repair costs. Items like televisions and air conditioners also move to 18 percent from 28 percent, making them more affordable. Thirty-three essential medicines, including those used for cancer and serious illnesses, have been exempted from tax, offering critical relief to patients.
Impact on vehicles, auto parts, and insurance
Small cars and motorcycles up to 350cc will now fall under the 18 percent slab instead of 28 percent, while auto parts and three-wheelers are also cheaper under the new tax rate. Health insurance premiums, previously taxed at 18 percent, are now free of GST, encouraging more people to purchase coverage at affordable rates.
For example, earlier a bottle of hair oil priced at 100 rupees carried an 18 percent tax, bringing the total cost to 118 rupees. With the new 5 percent GST rate, the same bottle will now cost 105 rupees, saving customers 13 rupees. This simple example shows how GST 2.0 will directly benefit households.
Balancing relief with economic challenges ahead
While GST 2.0 provides significant relief to consumers, the PwC survey shows that inflation remains a big worry for most families. As the government implements these reforms, the real challenge lies in ensuring that the benefits reach common households and help balance rising living costs with affordability.
Summary pointers
1. GST 2.0 effective from September 22 with two tax slabs.
2. Everyday goods, small cars, and appliances to become cheaper.
3. Health insurance made tax-free, medicines exempted from GST.
4. 63 percent of families still worried about rising inflation.
5. 7 percent struggling to pay basic household bills.
6. Many families now buying in bulk and growing food.
7. PwC survey shows changing shopping habits to handle inflation.
