Consumers See Savings On TVs And Dairy As GST Rate Cut Lowers Prices

Actual price reductions for sensitive commodities following the Sept. 22, GST rate adjustments show a mixed but generally positive picture, with the consumer benefit exceeding expectations in key sectors while lagging in others.

The nationwide monitoring of these price changes indicates that vendors have largely passed on the tax benefits, though not always in line with the expected percentage decrease.

The largest success story for the average household is in the dairy sector. Essentials like Cheese, which saw its rate cut from 12% to 5%, delivered an actual price drop of 7.91%, a notable saving that exceeded the expected 6.25% decrease.

Similarly, condensed milk and butter, also moving to the 5% slab, registered actual price drops slightly better than predicted, underscoring the immediate relief for basic food needs. UHT milk, now exempt from GST, also passed on a significant portion of its tax relief.

In the high-value consumer goods segment, the reduction from 28% to 18% for Television sets proved highly beneficial. TV sets saw an actual price reduction of 8.48%, which is a better result than the expected 7.81% drop, providing a significant boost to consumer sentiment for expensive and high-ticket purchases.

However, other appliances like dish washing machines and monitors showed a slight lag, with actual reductions settling just below the expected threshold.

Healthcare items also saw crucial savings post the GST rate cut. The move of many Drugs and Medicines from 12% to 5% has been smoothly reflected in market prices. However, a noticeable discrepancy was recorded for Thermometers, where the actual price decrease which stood at 7.38%, significantly missed the predicted benefit of 11.01%. The overall trend, however, confirms that the rate rationalisation has begun to trickle into saving for households, aligning with its promise of reducing the cost burden for consumers.