Ghar Kharcha: GST 2.0 Has Cut This Family's Grocery Bill by 10% — Here's How

Prime Minister Narendra Modi has called for a celebration of the 'GST Bachat Utsav', after the government announced reforms that will boost savings and benefit every household in the nation. On ground, while cars and white goods appear to have seen a fall in prices, items of daily use have seen mixed reports pouring in, with some manufacturers passing on the entire GST reduction, while others have passed on the benefit in part.

A quick litmus test for a conventional household living in Mumbai's suburbs and surviving off quick commerce platforms, indicates savings of about 10%. The Balasubramanians' household has three people who rely on the Blinkit dark store just around the corner of their home, for a majority of their groceries and home essentials. An order is placed about every alternate day and the primarily needs comprise of fruits and vegetables, along with milk products, cleaning supplies, home essentials and personal care products.

According to a quick analysis of their monthly spend preceding September 22, the household would have saved 10% on the items that GST has been revised on, if these items were now ordered over the course of the next one month.

For instance, an order placed a day before the fresh price cuts, comprising of a kg of medium grain basmati rice, half a litre ghee and 200 grams protein enhanced paneer, costs Rs 561. Including handling charges of Rs 11, levied by the bill, total was Rs 572. The same order if placed now, would entail savings of almost Rs 30 on the ghee, and Rs 10 and 7 on the rice and paneer, respectively, resulting in a bill that's 8% lower excluding the handling charges.

Fruits and vegetables are the most frequently ordered items by the household. To be sure, while the GST rationalisation might not have had an impact on that segment, low food and beverage inflation have aided household savings. Dairy products at large - butter, cheese, curd and ghee have seen a discernable moderation in prices. While several chocolates and instant coffee powder, frequently ordered by the Balasubramanians, saw almost a reduction of over 10%, alternate milk options such as coconut milk and soy milk too saw a modest reduction in prices, as did some kinds of flour.

Dals, spices and condiments saw no change. Ice cream costs less while carbonated soft drinks cost just as much as before.

Bathroom essentials and grooming products too saw a reduction in prices, along with baby products too becoming cheaper. A packet of Huggies diapers costs marginally lower by Rs 6, translating into savings of just over 2%.

With a reduction in GST rates on almost all food items and select essential personal care categories to 5% from 12% or 18%, the measure could partially revive consumption and improve the growth construct, said Amit Agarwal, senior vice-president for Fundamental Research at Kotak Securities. A good monsoon, tax cuts, interest rate cut and the benefits to the bottom end of the pyramid by state and central government in terms of direct cash benefits, are likely to help further aid household finances.