Winning Bizness Desk
Mumbai.Hindustan Unilever Limited (HUL) has reduced the prices of several of its popular consumer products, including Dove shampoo, Lifebuoy soap, Horlicks, Lux soap, and Kissan jam. With this price cut, customers will be able to save up to 15 percent on these daily-use items. The new prices will come into effect from September 22, 2025, across the country.
The move follows the decisions taken during the 56th GST Council meeting held on September 3, 2025. In that meeting, the government simplified the GST structure by removing the 12 percent tax slab. Now, only two slabs of 5 percent and 18 percent will remain.
Products moved to lower tax category
Several food items such as UHT milk, paneer, and jams were either exempted from GST or placed under the 5 percent tax bracket. Along with this, essential consumer products like soaps, shampoos, and toothpaste were shifted from the higher 18 percent slab to the 5 percent slab. The government had made it clear that this tax benefit should be passed on to consumers. In response, companies like HUL reduced their product prices.
Government allows change in old stock MRP
To implement this decision smoothly, the government has allowed companies to revise the Maximum Retail Price (MRP) of their old unsold stock. Manufacturers, packers, and importers can now update prices on older products through stickers, stamping, or digital printing. This will ensure that customers benefit from the new reduced rates even if they are buying goods from previously manufactured stock.
The Consumer Affairs Department announced on Tuesday that this special permission will remain valid until December 31, 2025, or until the old stock is fully sold. While companies can print the revised price on products, they must also display the original MRP for transparency. This dual display is aimed at protecting consumer rights.
Impact on household budgets
The price cut will provide relief to millions of households who rely on these products daily. Soaps, shampoos, and health supplements like Horlicks are common purchases across urban and rural markets. A 15 percent reduction in cost can make a visible difference to monthly budgets, especially for middle-class and lower-income families.
While essential items got cheaper, luxury goods and tobacco products will now attract higher taxes. The GST on such products has been raised from 28 percent to 40 percent. This includes large cars, motorcycles with engines above 350cc, and tobacco-based items. Their prices are expected to rise in the coming months.
Government’s intent behind reform
According to officials, the reform aims at striking a balance between reducing the burden on common consumers and generating more revenue from luxury and non-essential goods. By simplifying the GST structure, the government also hopes to reduce confusion in tax compliance and bring more efficiency to the system.
Relief and caution for consumers
Overall, the announcement has been welcomed by consumer groups and households. The new GST rate adjustments are expected to boost demand for essential goods while curbing excessive consumption of luxury products. However, experts advise consumers to remain alert and ensure that companies actually pass on the reduced tax benefits as intended.
Summary pointers
1. HUL cuts prices of Dove, Lifebuoy, Lux, Horlicks and Kissan products.
2. Up to 15 percent savings for consumers from September 22, 2025.
3. GST Council removed 12 percent slab, keeping only 5 and 18 percent.
4. Soaps, shampoos, toothpaste moved from 18 percent to 5 percent slab.
5. Companies allowed to revise MRPs on old stock until December 31, 2025.
6. Luxury items and tobacco products to face 40 percent GST.
7. Decision balances consumer relief with higher tax on non-essential goods.
