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India Jul 02, 2025

Centre considers GST relief on everyday items

The government might soon cut GST on everyday essentials like toothpaste, bicycles, umbrellas, and more—potentially dropping the tax from 12% to 5%.
If approved, this move aims to make these basics more affordable for everyone, especially middle and lower-income households.

TL;DR

List of items under consideration

Items in line for a price drop include toothpaste, umbrellas, sewing machines, pressure cookers, electric irons, small washing machines, bicycles, ready-made clothes over ₹1,000 and footwear between ₹500-1,000.
The idea is to help you save on things you use all the time.

Some states worry about losing revenue

While Finance Minister Nirmala Sitharaman supports lower taxes on daily-use goods to boost spending and simplify GST rules, some states worry about losing revenue—up to ₹50,000 crore.
The final decision will be made at the upcoming GST Council meeting after all states weigh in.