GST Rate Cuts from September 22: Relief for Common Man, Boost for Businesses

By Manisha Sahu / 10 September 2025

New Delhi, India – September 10, 2025:
In a major move set to bring significant relief to millions of consumers and businesses, the Indian government has announced sweeping changes to the Goods and Services Tax (GST) structure. Starting September 22, a range of daily-use items, including essential dairy products, personal care goods, and even event tickets, will see substantial tax reductions as part of the latest reforms introduced by the GST Council.

The revised GST framework is a part of the government’s continued effort to simplify the indirect tax regime and stimulate consumption. The reform shifts the previous four-tier GST structure of 5%, 12%, 18%, and 28% into a more streamlined two-tier system comprising just 5% and 18%.

This rationalisation is aimed not just at easing the tax burden on the common man, but also at revitalizing India’s domestic markets and boosting small and medium enterprises across the country.



What’s Changing from September 22?

Under the new GST structure:

Essential dairy products such as Paneer, Chhena, and Ultra High Temperature (UHT) Milk, which were earlier taxed at 5%, are now completely exempted from GST.

Popular dairy items like Butter, Ghee, and Cheese will now attract just 5% GST, down from the previous 12%.

Even milk storage containers made of iron, steel, and aluminium have seen a tax reduction from 12% to 5%.

Plant-based milk beverages, which were earlier in the 18% slab, will now be taxed at only 5%, making healthier alternatives more accessible to consumers.


Broader Impact Across Sectors

Apart from dairy, other sectors also benefit from the GST revision:

Soaps and personal care products see reduced taxation, bringing down everyday costs for consumers.

Pharmaceuticals have been rationalised to promote affordable healthcare.

Even IPL tickets and entertainment-related services, often viewed as luxury spending, have seen tax cuts, potentially increasing attendance and consumption in the entertainment industry.


The changes are a part of the government’s larger goal to make taxation consumer-friendly while fostering economic growth and job creation.



Expert Opinions & Industry Reaction

Industry leaders and consumer advocates have widely welcomed the move. Jayen Mehta, Managing Director of the Gujarat Cooperative Milk Marketing Federation (GCMMF), the parent organization of India’s leading dairy brand Amul, lauded the decision.

“This is great news for both producers and consumers. Lower taxes will not only reduce prices but also encourage higher consumption. For dairy farmers, especially those in rural India, this move opens up access to a larger and more sustainable market,” said Mehta.



Experts believe that the GST cuts could be a game-changer for the dairy sector, which is deeply intertwined with the livelihood of over 8 crore rural families, many of whom are small, marginal, or landless farmers. These reforms are expected to increase profitability, improve market access, and encourage modernization of dairy operations.



Relief for the Common Man

For urban and rural consumers alike, these reforms translate to lower costs on essential commodities. With inflation remaining a concern globally, these tax cuts are a timely intervention that can help improve consumer confidence and purchasing power.

This move aligns with the government’s broader goal of ensuring that economic development is inclusive, and benefits trickle down to the grassroots level, especially in sectors like agriculture and dairy that form the backbone of India’s rural economy.

A Boost for Businesses and the Economy

For businesses, especially small and medium enterprises (SMEs) involved in manufacturing and distribution of daily-use goods, the GST rate cuts lower operational costs and increase market competitiveness. Analysts predict that this could improve demand, especially in the upcoming festive season, giving the economy a much-needed boost.

Economists also see this reform as a step toward creating a more uniform and transparent tax system, encouraging compliance and reducing the burden of indirect taxes on both producers and consumers.



What to Expect Next ?

With implementation set to begin on September 22, companies are expected to start revising price tags, while supply chains will adjust to the new input costs. The GST Council has also hinted at further rationalisations in future meetings, depending on the success of this rollout.

As India continues to streamline its tax systems, the hope is that reforms like these will not only make life easier for consumers but also encourage greater economic participation from rural India, and ensure sustainable, long-term growth for the country.



Stay tuned to America News World for the latest updates on GST reforms, market trends, and global business developments.