GST relief likely for middle class: Here’s list of essential goods that may get cheaper

The Central Government is planning a major Goods and Services Tax (GST) revamp that could bring price relief for middle-class and lower-income households.

The proposal includes eliminating the 12% GST slab and reclassifying several commonly used items into the 5% category.

Key Highlights of the Proposed GST Relief

Targeted Items: The relief focuses on daily-use goods such as:

Toothpaste, tooth powder

Umbrellas, sewing machines

Pressure cookers, aluminium/steel utensils

Electric irons, geysers, small washing machines

Bicycles, footwear (Rs 500–1,000), garments (above Rs 1,000)

Stationery (exercise books, geometry boxes, maps)

Basic vaccines, diagnostic kits, Ayurvedic medicines

Ceramic tiles, solar water heaters, agricultural tools

Objective: To make essential goods more affordable, boost consumption, and broaden the tax base in the long run.

Financial Implication: Estimated revenue loss of Rs 40,000–Rs 50,000 crore, which the Centre is reportedly prepared to absorb.

Policy Rationale

The government expects lower prices to fuel higher demand, ultimately compensating for the short-term loss via increased GST collection.

The move is part of a broader strategy to introduce a more rational and easier-to-comply tax framework.

Finance Minister Nirmala Sitharaman recently hinted at ongoing deliberations to make GST more middle-class friendly.

The proposal is expected to be tabled at the 56th GST Council meeting, likely to be held later this month.

The 12% GST slab currently applies to many items used by average households, sitting between the essential 5% and luxury 18% brackets. Eliminating it could bring relief to millions while simplifying India's four-rate GST system.