GST 2.0 Update: Medicines, Cars, Hotels, Electronics & FMCG Prices Slashed

Price Reduction Across the Board

Prices will fall from Monday on kitchen items, electronics, medicines, medical devices, cars, and insurance premiums. Tax rates are reduced on 375 products in GST 2.0. FMCG, automobile, electronics, and dairy firms have confirmed that revised prices will become effective from September 22.

For drugs and essential items, new prices might not have appeared on packaging. Nevertheless, the government asked companies to apply reduced rates in selling. Taxes on beauty salons, gyms, yoga studios, and cosmetics such as face powder, shaving cream, and soap decreased from 18% to 5%. Taxes on dangerous products rose from 28% to 40%. According to the Finance Minister, this cut will inject ₹2 lakh crore into the economy.

Medicines

Tax rate fell from 12% to 5%.
36 cancer and critical illness drugs are tax-free.

Vehicles

Prices of two-wheelers fell up to ₹18,800.
Prices of cars fell up to ₹4.48 lakh.
Prices of luxury cars fell up to ₹30.4 lakh.

Television Prices

GST on TV sets with over 32-inch screens fell from 28% to 18%.
Prices fell between ₹2,500 and ₹85,000.
Festive demand during Dussehra is expected to increase by companies.

Sony India:

43-inch model: from ₹59,900 → ₹54,900.
55-inch model: from ₹2.5 lakh → ₹2.3 lakh.
98-inch model: from ₹9 lakh → ₹8.29 lakh.

LG Electronics:

43-inch: from ₹30,990 → ₹28,490.
55-inch: from ₹46,390 → ₹42,990.
65-inch: from ₹71,890 → ₹68,490.
100-inch: from ₹5.85 lakh → ₹4.99 lakh.

Panasonic:

43-inch models cut by ₹3,000 (new prices: ₹33,990, ₹45,990, ₹54,290).
55-inch models cut by ₹7,000 (new prices: ₹65,990, ₹76,990).

Hotels

Rooms costing ₹7,500 or less now taxed at 5% without ITC, compared to 12% with ITC.
Guests get up to ₹525 off per booking.
Hotels anticipate greater revenues, increased investments, and enhanced services.