Winning Bizness Desk
Mumbai.The biggest news of the day revolved around the implementation of new GST rates from September 22. Common items like ghee, paneer, soap and shampoo have become cheaper along with air conditioners and cars. The central government had announced on September 3 that the new tax structure would come into force, and now only two GST slabs will remain in place – 5 percent and 18 percent. Earlier, different rates applied to different categories, which often led to confusion. The move is aimed at making the tax system simpler and more transparent. The GST Council had finalized this change during its 56th meeting.
Small cars get major price reduction
One of the biggest beneficiaries of this GST reform is the small car segment. Earlier, these cars attracted a total tax of 29 percent, which included 28 percent GST and 1 percent chess. Now, the rate has been brought down to 18 percent. With this reduction, family cars like Maruti Swift, Wagon, Alto, Tata Tiago, Hyundai i10 and Kia Cirrus have become 10 to 15 percent cheaper. The overall price cut ranges from Rs 70,000 to Rs 4.49 lakh, making it a good opportunity for customers looking to buy cars during the festive season.
Luxury cars see sharp price fall
Luxury car buyers too have reasons to cheer. Earlier, these vehicles attracted a tax of 45 percent, consisting of 28 percent GST and 17 percent chess. The revised rate has been reduced to 40 percent. As a result, brands like Land Rover, Mercedes, Audi, Porsche and BMW have slashed their prices significantly. Cars in this segment are now cheaper by 5 to 10 percent. The cuts range from Rs 2.40 lakh to as high as Rs 30.40 lakh. For example, the Land Rover Defender has become cheaper by Rs 18.6 lakh, while some Mercedes models have seen a reduction of up to Rs 23.50 lakh.
Relief extends to daily household items
It is not just automobiles that are seeing relief. From September 22 onwards, buying everyday items like ghee, paneer, soap and shampoo has become cheaper as well. These products have been brought under the 5 percent GST slab, providing direct savings for common households. The government’s intention is to give relief in essential commodities while keeping luxury and non-essential items in a slightly higher bracket.
Simplified tax system with two slabs
The government’s move to limit GST to only two slabs – 5 percent and 18 percent – has been welcomed by traders and consumers. Earlier, multiple rates made the taxation system complicated, creating hurdles in billing and compliance. The reduction and simplification are expected to boost consumer demand, improve compliance and reduce litigation related to tax disputes. This has also been seen as an effort to encourage spending ahead of the festive season.
Gold reaches new lifetime high
Even as GST cuts made items cheaper, gold prices soared to a new all-time high on September 22. According to the India Bullion and Jewelers Association, the price of 10 grams of 24-carat gold jumped by Rs 2,380 to reach Rs 1,12,155. Earlier, it was at Rs 1,09,775. The continuous rise in gold prices this year has made it costlier by Rs 36,000 so far. Investors often turn to gold in uncertain times, and this fresh rise reflects both global and domestic trends.
Silver prices also set new records
Silver has not been left behind in this rally. Prices rose by Rs 4,869 per kilogram, reaching Rs 1,32,869, compared to the previous Rs 1,28,000 level. Both gold and silver prices hitting record highs on the same day have become talking points in markets. While GST cuts brought relief to buyers of goods and vehicles, precious metals continue to weigh heavy on buyers’ pockets, indicating contrasting trends in the economy.
Summary pointers
1. GST rate cuts implemented from September 22 across sectors.
2. Small cars now attract only 18 percent GST, earlier 29 percent.
3. Prices of cars like Alto and Tiago reduced by up to Rs 4.49 lakh.
4. Luxury cars now 5-10 percent cheaper, up to Rs 30.40 lakh cut.
5. Household items like paneer, ghee, soaps and shampoo also cheaper.
6. Government brings GST to just two slabs – 5 percent and 18 percent.
7. Gold hits Rs 1.12 lakh per 10 grams, silver Rs 1.32 lakh per kg.
