- The short: what changes on Sep 22
- Winners/losers matrix (FMCG, autos, EVs, insurance)
- Price pass-through cheat sheet (fully vs partially passed)
- Brand/retailer checklist (billing, labels, promos)
The short
- Two main slabs: 5% for essentials, 18% standard — with 40% aimed at luxury/sin goods.
- Effective: September 22 (notifications/HSN lists govern exact item placement).
- Services to watch: Health & life insurance premiums get GST relief (zero-rating/exemption per Council communication); other services mostly align to 18% unless specified.
Winners & losers — quick matrix
| Category | Representative items | Old rate (indicative) | New rate | 1st-order impact | Pass-through odds |
|---|---|---|---|---|---|
| FMCG staples | Atta, edible oils, basic packaged foods | 0–5–12–18% mix | 5% (essentials) | Ticket sizes ease at kirana/modern trade | High (competitive markets) |
| FMCG personal care | Soaps, shampoos, detergents (mass) | Often 18% | 5% / 18% by item | Where moved to 5% → price cuts; 18% unchanged | Medium-high (promo-led) |
| Autos (mass) | Entry cars, 2-wheelers | 28% + cess (model-specific) | 18% where re-pegged | On-road relief where cess drops | Medium (OEMs manage inventory/variants) |
| EVs | 2W/4W EVs, chargers | 5%/18% mix earlier | 5% / 18% per list | Entry EVs remain advantaged | High (policy-favoured) |
| Autos (luxury/sin) | Luxury SUVs, performance models | 28% + cess | 40% | Little/no consumer relief | Low |
| Insurance | Health & life premiums | 18% | 0% (relief) | Premium outgo falls by tax component | High (direct pass-through) |
Note Exact placement depends on the final HSN-wise lists/notifications — use this matrix as a directionally correct desk guide.
Price pass-through cheat sheet
Illustrative math on a product with pre-tax base price of ₹100. Use to sanity-check MRPs and promo tags post-reset.
| Case | Tax before | Tax after | MRP before | MRP after (full pass) | Δ Price |
|---|---|---|---|---|---|
| 18% → 5% | ₹18 | ₹5 | ₹118 | ₹105 | −11.0% |
| 12% → 5% | ₹12 | ₹5 | ₹112 | ₹105 | −6.3% |
| 28% → 18% | ₹28 | ₹18 | ₹128 | ₹118 | −7.8% |
| 18% → 18% | ₹18 | ₹18 | ₹118 | ₹118 | 0% |
| 28% → 40% | ₹28 | ₹40 | ₹128 | ₹140 | +9.4% |
Reality check: If brands pass only half the tax cut, the % drop halves. Watch combo of MRP cuts + extra grammage + promo packs.
Brand/retailer checklist (fast)
Brands
- Update tax masters/HSNs; reissue price lists & promo grids.
- Decide pass-through mix: MRP cut vs grammage vs trade scheme.
- Clear communication on insurance premium GST relief (if applicable) in CX flows.
Retailers
- POS patch + shelf talkers: “New GST price”.
- Dual-inventory handling: pre- and post-reset batches.
- Returns/credit notes workflow for stock received near Sep 22.