GST Relief For Middle Class: Cheaper Essentials On The Cards
The keyphrase “GST relief for middle class” is now more than a headline—it’s a possible policy shift. If recent GST Council hints convert into rate cuts, your monthly essentials like toothpaste, steel utensils, clothes, and footwear could soon get lighter on the pocket. Here’s what the latest signals mean for Indian consumers and small businesses.
Why GST Relief For Middle Class Is Gaining Momentum
In the 53rd GST Council Meeting held on 22 June 2024, Finance Minister Nirmala Sitharaman acknowledged growing demands to rationalise tax rates on daily-use items.
Key Points Discussed:
- A Group of Ministers (GoM) was reactivated to review GST slabs and exemptions
- The Council noted public feedback on high 18% GST on many household items
What Items May Get Cheaper?
Based on past industry representations and GoM discussions, the following items are likely candidates for GST rate cuts:
| Item Category | Current GST Rate | Proposed Relief | Impact |
|---|---|---|---|
| Toothpaste | 18% | Possibly 12% | Monthly savings for all households |
| Stainless Steel Utensils | 18% | Possibly 12% or 5% | Relief for small retailers and buyers |
| Readymade Garments (below ₹1,000) | 5% | Likely to be retained | Push to lower rates for ₹1,000–₹2,000 |
| Footwear (below ₹1,000) | 12% | Likely cut to 5% | Relief for schoolgoing kids, daily wage families |
Legal Basis for GST Rate Revisions
Any change in GST rates requires:
- Council Recommendation under Article 279A(4)
- Notification by CBIC under Section 9(1) of CGST Act, 2017
- Amendment to GST Rate Schedules (Notification No. 1/2017 – CT (Rate))
Such decisions are usually preceded by:
- Discussions in the Fitment Committee
- Economic impact assessments
- Industry consultations
Practical Insight: How Much Will You Actually Save?
Let’s break down the math:
Example:
If you spend ₹250 per month on branded toothpaste and the GST rate drops from 18% to 12%, your tax component falls from ₹38.13 to ₹26.78.
Multiply that across 5–6 items per household, and the relief is noticeable.
Expert View: Relief Must Be Balanced With Revenue
Tax experts caution that slab rationalisation must strike a balance between:
- Affordability for end consumers, and
- Revenue neutrality for the government
According to 15th Finance Commission estimates, every 1% GST reduction on mass-consumption items can reduce collections by ₹2,000–₹3,000 crore annually.
What Should You Expect Next?
Here’s the likely roadmap for GST relief for the middle class:
- Fitment Committee Review – expected in next few weeks
- Final Council Approval – possibly in the pre-Budget session
- Official CBIC Notification – needed to bring any rate change into effect
Related Reading
➡️ GST Rate Changes Recommended in 53rd Council Meeting – Full Summary
Summary
GST relief for the middle class may soon reduce tax rates on essentials like toothpaste, utensils, and footwear. The 53rd GST Council Meeting hinted at rationalisation. Once approved and notified, these rate cuts can lower your monthly expenses significantly. Here’s what to expect in the coming months.
FAQs
Q1. Has the GST rate on toothpaste officially been reduced?
No. As of July 2025, no official notification has been issued. The proposal is under review.
Q2. Who decides GST rate changes?
The GST Council recommends changes, and CBIC notifies them under the CGST Act.
Q3. When can we expect rate cuts to be effective?
Possibly in the next GST Council Meeting or before Budget 2026.
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