New GST Rates Take Effect Tomorrow and Could Save You Money If You Check Your Bills
Revised GST rates may lower prices but could confuse consumers at checkout.
Starting September 22, 2025, coinciding with the first day of Navratri, India’s commercial landscape will see the implementation of revised Goods and Services Tax (GST) rates, promising reduced prices for consumers. However, the transition may lead to confusion at retail and wholesale levels, prompting the Department of Consumer Affairs to issue a revised advisory to facilitate smoother adoption by businesses.
To reflect the updated GST rates, manufacturers, packers, and importers are permitted to affix new Maximum Retail Prices (MRPs) on packaged goods using stickers, stamps, or digital printing. This adjustment allows old packaging to be used until March 31, 2026, or until existing stocks are depleted.
However, the presence of both old and new prices on products could lead to errors, with some shopkeepers inadvertently overcharging due to unawareness or oversight. For instance, a packet of biscuits now priced at Rs. 25 under the revised GST rates might still be sold at its previous rate of Rs. 40.
Initially, companies were required to advertise revised MRPs in two newspapers, but this mandate was recently lifted to ease compliance burdens. Manoj Mishra, a partner at Grant Thornton Bharat, told India Today, “The government’s clarification reduces compliance burdens for businesses while still ensuring transparency for consumers. But shoppers need to double-check MRPs to make sure they benefit from the GST reduction.”
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As the new GST rates roll out, consumers are advised to remain vigilant and verify prices at the point of purchase to fully capitalize on the tax reductions. While the changes are poised to bring financial relief, careful attention to pricing details will ensure that the benefits of lower taxes reach shoppers’ pockets.
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