In a major relief for the common man, the Goods and Services Tax (GST) Council has approved sweeping reforms under the Next-Gen GST framework, significantly reducing taxes on essential household items. The move, being termed a “Diwali gift to the nation,” is aimed at easing the cost of living while boosting consumption and small businesses.
Household and personal care items to 5%
Several daily-use essentials will now attract only 5% GST, down from the earlier 12–18% slab. This includes:
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Hair oil, shampoo, toothpaste, toilet soap bars, tooth brushes, shaving cream (from 18% to 5%)
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Butter, ghee, cheese, and dairy spreads (from 12% to 5%)
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Pre-packaged namkeens, bhuja, and mixtures (from 12% to 5%)
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Utensils (from 12% to 5%)
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Feeding bottles, napkins for babies, and clinical diapers (from 12% to 5%)
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Sewing machines and parts (from 12% to 5%)
The cuts are expected to bring down household expenses directly, offering families meaningful savings on everyday consumption.
Relief for healthcare and education
The healthcare sector also stands to gain, with GST on diagnostic kits, reagents, glucometers, and corrective spectacles slashed to 5%. Individual health and life insurance policies have been fully exempted from GST, a move likely to make coverage more affordable for millions.
For students, GST on maps, charts, exercise books, notebooks, and stationery such as pencils and erasers has been reduced to nil, directly benefiting households with school-going children.
Broader reform push
The government has positioned this as part of a broader reform to simplify GST and boost compliance. Prime Minister Narendra Modi said the changes would “make everyday items cheaper and give a boost to the economy,” while officials emphasized that MSMEs and small entrepreneurs will gain from reduced costs and streamlined tax processes.
