BIG relief for middle-class as government gears up to offer GST reduction on daily-use goods, check what will get cheaper

After a series of income tax concessions earlier this year during the budget presentation 2025, the central government is now gearing up to extend relief to middle and lower-income households in the form of a reduction in Goods and Services Tax (GST), NDTV has quoted sources as saying. 

According to the NDTV report, the Centre is considering eliminating the 12 per cent GST slab altogether or reclassifying many items currently taxed at 12 per cent into the lower 5 per cent bracket. As per sources, the restructuring would target items widely used by the middle-class as well as economically weaker sections such as toothpaste, umbrellas, sewing machines, pressure cooker, electric irons, bicycles, and more. 

Moreover, readymade garments priced over Rs 1,000 and footwear priced between Rs 500 and Rs 1,000 would also be reclassified into the lower bracket. In addition, vaccines, ceramic tiles, stationary items are likely to get cheaper. 

If the proposed changes are brought into effect, the above-mentioned things will get much cheaper, bringing respite to middle-class and EWS.

Financial impact 

As per the NDTV report, the centre reckons that lower prices will lead to higher sales, ultimately resulting in a tax base and increased long-term GST collections. Notably, Union Finance Minister Nirmala Sitharaman, in a recent interview, hinted at potential changes in GST rates which would offer relief to the middle class.