Effective from 22 September 2025, the 56th GST
Council's (Council) recommendations on rate reductions across
categories, will be implemented. The overhaul of multiple rate
slabs has been touted as “next generation Goods and Service
Tax reforms” and a transformative milestone in India's
indirect tax journey. Aimed with the objective to lower consumer
costs and boost demands, we examine the rate changes across the
Indian Retail spectrum covering the expanse of consumer goods,
luxury items, FMCGs, cars and electrical appliances, etc. and
aspects that businesses will need to be cognizant of.
GST Rate revisions relevant for the Retail sector
One of the headline overhauls of rates has been witnessed in the
everyday ‘Personal Care and Grooming Products'
category. Items such as hair oil, shampoos, combs, hair pins
and allied essential, shaving cream, shaving lotions, toilet soaps,
toothpaste, brush, floss which were earlier taxed at 18%/12%,
will now attract the lower tax
