Synopsis: The 56th GST Council meeting has brought major relief to households by reducing GST rates on everyday essentials, shifting several items from higher tax brackets to just 5%. From toiletries to kitchenware and bicycles, the move promises lighter bills for the common man.
The 56th meeting of the GST Council has announced a major revamp of India’s indirect tax structure, aiming to simplify slabs and reduce the burden on consumers. The Council approved the Group of Minister’s (GoM) proposal to retain just two main slabs—5% and 18%—while rationalizing several goods and services into these brackets.
A wide range of items that were earlier taxed at 12% or 18% will now attract only 5% GST, making them significantly cheaper for the public. This includes essential consumer goods like feeding bottles, tooth powder, sewing needles, bicycles, utensils made of steel, copper, or aluminium, and even baby care products like diapers and napkins.
Additionally, personal care and household items such as talcum powder, shampoos, hair oils, shaving creams, soaps, and toothpaste—previously taxed at 18%—will now fall under the 5% bracket. This move is expected to directly benefit millions of households by lowering the cost of everyday living.
Experts believe this rationalization will not only ease compliance but also boost demand in multiple sectors including FMCG, textiles, renewable energy, and household goods. The reform marks one of the most consumer-friendly steps in recent GST history.
Disclaimer: This article is based on publicly available information from government announcements and media reports. Readers are advised to consult official GST notifications for precise details before making business or financial decisions.
