Many consumer items such as shampoo, talcum powder and utensils have seen more-than-expected price cut post GST reforms 2.0 under which most daily-use items have been placed under lower rate slabs, Union Finance Minister Nirmala Sitharaman claimed on Saturday.
“In quite a few cases, a more-than-expected price reduction due to GST reforms has been passed on to end consumers,” the Finance Minister said.
Sitharaman cited the case of shampoo, talcum powder, clinical diapers, household items of iron and steel, and umbrellas where prices came down more than the GST rate cut.
“For Shampoo, GST rates have been reduced from 18% to 5%. The intended benefit was 18 to 5% which means around 11.02%. Actual Decrease in price based on average price reported by various CGST Zones is 12.36%,” she said.
Similarly, for face powder, GST rates have been reduced from 18% to 5% and the intended benefit was 11.02% but the actual decrease in price is 12.22%.
“For Clinical diapers, GST rates have been reduced from 12% to 5%. The intended benefit was 6.25% but the actual decrease in price is 10.38%. For table, kitchen or other household articles of iron, steel and copper; utensils, GST rates have been reduced from 12% to 5%. The intended benefit was 6.25% but the actual decrease in price is 10.24%,” the Minister said.
She further said that for toys like tricycles, scooters, pedal cars etc., including parts and accessories thereof, GST rates have been reduced from 12% to 5% and the intended benefit was 6.25% but the actual decrease in price is 8.93%.
“For umbrellas and sun umbrellas, including walking-stick umbrellas, garden umbrellas and similar umbrellas, GST rates have been reduced from 12% to 5%. The intended benefit was 6.25% but the actual decrease in price is 9.19%,” she said.
Sitharaman noted that since September 22 the Finance Ministry has been receiving information from the zonal levels on all items.
She further said that the Ministry has been closely monitoring the prices of 54 products to ensure that the benefits of the revised tax structure are reaching the end consumers.
“The Next-Gen GST benefits have been fully passed on across all 54 items,” the Finance Minister said.
In sweeping rate reductions across sectors, the GST Council in its meeting in September this year decided to move to two-tier rate structure of 5% and 18% for most items with focus on common-man.
