GST 2.0: Retailers Gear Up To Pass Tax Cut Benefits As New Charges Kick In From Sept. 22
GST 2.0: From Sept. 22, when the revised rates officially kick in, consumers are likely to see direct savings across footwear, clothing, electronics, healthcare, and everyday essentials.
With Prime Minister Narendra Modi announcing major GST rate rationalisation in his Independence Day address and the GST Council later approving a two-slab structure, retailers are now preparing to extend the price benefits to customers.
NDTV Profit visited shops in Bandra West to understand how businesses are adjusting to the reforms. At Eridani, a shoe store in Bandra, staff are already reworking internal systems to reflect the new tax brackets.
Under the revised rules, shoes priced up to Rs 2,500 will now attract only 5% GST, compared to the earlier cap of Rs 1,000. "We will be passing on the benefits either as discounts on final orders or through updated barcodes," a staff member at Eridani told NDTV Profit.
“Customers have started enquiring about cheaper rates since the announcement,” said an employee at another Bandra shoe store on the condition of anonymity. The story is similar at Jyoti, a clothing shop on Linking Road, where apparel worth up to Rs 2,500 will now fall under the 5% GST slab. The store said it is waiting for its suppliers to implement the revised prices.
“The changes will be reflected by the parties we import from. Once that happens, customers will see the new rates directly,” the shop owner explained. Home appliance dealers are also expecting a surge in demand.
At Metro, Radio and Electronics House in Bandra, owner Amit Shahani said sales have slowed in anticipation of the rate cut, but footfall is expected to rise sharply once the new rates take effect on September 22. “ACs and TVs will see price cuts of at least 8–10%. Across products, customers can expect slashes of Rs 3,000–7,000,” Shahani told NDTV Profit.
Everyday essentials like soaps, toothpaste, and packaged foods have moved to 5% or nil, while small cars, two-wheelers, TVs, ACs, and cement have been cut from 28% to 18%. Life-saving medicines, health insurance, and farming equipment have also seen steep reductions.
The government has projected the reforms as a “Diwali gift” for households and businesses, with the aim of boosting affordability, easing compliance, and spurring consumption-led growth. From Sept. 22, when the revised rates officially kick in, consumers are likely to see direct savings across footwear, clothing, electronics, healthcare, and everyday essentials.
