Finance Minister Nirmala Sitharaman announced this week that the revamped GST structure will shift nearly 99 percent of goods in the 12 percent bracket to the 5 percent slab. Products such as butter, cheese, confectionery, and salty snacks are part of this change. Items including biscuits, ice-cream, soaps, and toothpaste will also now attract 5 percent GST instead of 18 percent. Although the revised rates will officially apply from Monday, several companies have already begun dispatching goods to retailers by covering the tax difference on their own.

 

Baskin Robbins has already adjusted its invoicing to the 5 percent GST rate. At its outlets, digital displays and laminated menus have been updated to reflect the new pricing. Manufacturers of grocery and personal care products confirmed that reduced-price stock has started moving to distributors and retail chains. “Larger packs with lower prices are already on display at some stores, and the rollout will expand further over the weekend,” said a senior executive at a leading personal care company. He added that these products are being invoiced at the new rates, with companies willing to absorb part of the cost difference.

 

Major FMCG firms such as Procter & Gamble, Hindustan Unilever, L’Oreal, ITC, and Britannia have introduced fresh price cuts. P&G announced reductions on Head & Shoulders and Pantene shampoos, Pampers diapers, Gillette shaving cream, Old Spice deodorant, and Vicks. HUL lowered prices on Dove and Clinic shampoos, Bru coffee, Kissan jam, and Lux and Lifebuoy soaps. Retail distributors in the National Capital Region confirmed that reduced-price packs are already reaching shelves, particularly larger packs that customers may purchase in advance of the GST change.

 

E-commerce and quick-commerce players are also moving early to attract buyers. Swiggy Instamart has rolled out discounts beginning Saturday under the tagline of “unlocking GST savings early.” Amazon Now has launched a promotional campaign offering annual savings of ₹25,000 on daily essentials and cashback of up to ₹200 on its app.

 

Under the revised structure, GST has been streamlined into three key brackets: 5 percent, 18 percent, and 40 percent. The lowest slab covers most daily-use and household goods, 18 percent applies to standard products and services, while luxury items and categories such as tobacco and aerated drinks fall into the highest bracket.