Sitharaman Unveils GST Reforms: Relief for Households from Sept 22

Soumya Verma
By
Soumya Verma
Correspondent
Soumya Verma is Senior Correspondent at StartupFeed, covering startup policy, government schemes and early-stage funding in India. She writes from inside the ecosystem she reports on...
- Correspondent
Follow StartupFeed on Google News

Summary:

  • GST cut to 5% on soaps, shampoos, toothpaste, bicycles, and kitchenware.

  • Paneer, chena, and UHT milk now tax-free under new revision.

  • All Indian breads exempted from GST, easing household budgets.

 In a major relief to households, the government has reduced Goods and Services Tax (GST) on a wide range of daily essentials. Finance Minister Nirmala Sitharaman, addressing the media in New Delhi, confirmed that the revised rates will be applicable from September 22.

Everyday Relief for Families

Essential household items such as hair oil, toilet soaps, shampoos, toothbrushes, toothpaste, bicycles, tableware, and kitchenware will now carry only 5% GST, down from the previous 12–18%.

“These are items that touch every family,” Sitharaman noted. “Lowering GST directly lightens the cost of living.”

Food Basket Gets Cheaper

The government has also taken steps to make food more affordable. GST on UHT milk, paneer, and chena has been reduced to zero, while all Indian breads will now be GST-free.

This move is expected to bring immediate relief from rising food costs and help stabilize household budgets.

GST Reforms Table

Item CategoryPrevious GST RateNew GST RateChange
Hair Oil, Toilet Soap, Shampoos12% / 18%5%Reduced
Toothbrushes, Toothpaste12% / 18%5%Reduced
Bicycles12% / 18%5%Reduced
Tableware, Kitchenware12% / 18%5%Reduced
Ultra-High Temperature (UHT) Milk5%0% (Nil)Exempted
Paneer & Chena5%0% (Nil)Exempted
All Indian Breads5%0% (Nil)Exempted

Effective September 22

The revised GST rates will come into force on September 22. The government expects this move to boost consumption, provide savings for families, and support industries producing these essentials.

From soaps to bread, the latest GST reforms are designed to put more savings into the hands of ordinary citizens, reflecting the government’s focus on affordability and welfare.

Correspondent
Follow:
Soumya Verma is Senior Correspondent at StartupFeed, covering startup policy, government schemes and early-stage funding in India. She writes from inside the ecosystem she reports on — working within one of North India's largest startup incubation centres, where she evaluates early-stage ventures on technology readiness and investor preparedness, and drafts funding proposals at crore scale under national innovation schemes. She has guided more than 75 plus founders through pitch, valuation and compliance, and reports on the same programmes she works with every day
Newsletter signup illustration: an open envelope with a letter and a paper plane

Don’t Miss Startup News That Matters

Join thousands of readers getting daily startup stories, funding alerts, and industry insights.

Newsletter Form

Free forever. No spam.