Reduced GST charges: Leading FMCG corporation ITC promises to transmit the entire advantage to consumers throughout their product range - Learn more inside
The central government-led GST council has announced a revamp of the existing tax structure in the economy, effective from 22 September 2025. The reforms are intended to benefit people, small businesses, and the economy, according to a separate statement by the finance minister.
In the automotive sector, Maruti Suzuki, India's largest automaker, announced price cuts on its passenger cars, following the GST rate rationalisation. The price cuts are in response to the GST council's rate rationalisation move in the Indian economy. Maruti Suzuki's executive director stated that the reforms have been transformative for both consumers and businesses. The price cuts are expected to result in savings of up to ₹1.29 lakh on their passenger cars.
The sub-four-metre car segment comprises a large portion of Maruti Suzuki's portfolio. Other automotive companies, such as Mahindra & Mahindra, Tata Motors, TVS Motor Co., Yamaha, Honda Cars, Hero MotoCorp., have also announced price cuts. Other companies in the automotive sector, like TVS, have stated they will pass on the full benefit to their customers.
The revamped GST structure will see two tax slabs, one at 5% and another at 18%. The GST rate cuts are expected to make vehicles in the Indian market cheaper, bringing relief to consumers through enhanced affordability, as previously stated. The price cuts apply to the ex-showroom prices of the vehicles.
In the FMCG sector, ITC Ltd announced that it will pass on the full benefit to its customers after the GST rate rationalisation. ITC's FMCG businesses span a wide range of categories and products, reaching nearly 7 million retail outlets across India. ITC's executive director, Sumant, stated that the reforms have been transformative for both consumers and businesses. Sumant added that necessary steps are being taken to notify consumers about the ensuing benefits.
The GST reforms are expected to boost consumption and strengthen investments, growth, and employment. The GST council's decision to revamp the existing tax structure is a significant step towards making goods and services more affordable for consumers, thereby stimulating economic growth and development in India.
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