Government Considers Cutting or Removing 12% GST Slab : The Indian government is exploring a plan to ease the tax burden on everyday goods by lowering or scrapping the 12% GST slab. This change aims to make essential items more affordable for middle- and lower-income families.
Officials are debating whether to reduce GST on these goods from 12% to 5%, or completely remove the 12% slab and redistribute items between the 5% and 18% tax brackets.
Key Goods Could Become More Affordable
Many items currently taxed at 12% are basic necessities used daily by millions. If the proposal goes through, products like toothpaste, sanitary napkins, umbrellas, and sewing machines could see a price drop.
Other goods that might become cheaper include:
- Pressure cookers and kitchen utensils
- Electric irons and geysers
- Small washing machines
- Bicycles and ready-made garments over ₹1,000
- Footwear priced between ₹500 and ₹1,000
- Vaccines and stationery
- Condensed milk, nuts, dried dates, and diabetic foods
This list highlights 25 popular essentials that could benefit from the tax cut.
These Items Can Become Cheaper
| Toothpaste, Tooth powder | 12% | 5% | Cheaper |
| Sanitary napkins | 12% | 5% | Cheaper |
| Umbrellas | 12% | 5% | Cheaper |
| Sewing machines | 12% | 5% | Cheaper |
| Pressure cookers, kitchen utensils | 12% | 5% | Cheaper |
| Electric irons | 12% | 5% | Cheaper |
| Geysers | 12% | 5% | Cheaper |
| Small-capacity washing machines | 12% | 5% | Cheaper |
| Bicycles | 12% | 5% | Cheaper |
| Readymade garments (over ₹1,000) | 12% | 5% | Cheaper |
| Footwear (₹500–1,000) | 12% | 5% | Cheaper |
| Stationery items | 12% | 5% | Cheaper |
| Vaccines | 12% | 5% | Cheaper |
| Ceramic tiles | 12% | 5% | Cheaper |
| Agricultural tools | 12% | 5% | Cheaper |
| Condensed milk, butter, cheese | 12% | 5% | Cheaper |
| Nuts and dried dates | 12% | 5% | Cheaper |
| Tableware and kitchenware of wood | 12% | 5% | Cheaper |
| Building bricks | 12% | 5% | Cheaper |
| Hand bags and shopping bags (cotton/jute) | 12% | 5% | Cheaper |
| Idols of wood, stone, non-precious metals | 12% | 5% | Cheaper |
| Rubber bands | 12% | 5% | Cheaper |
| Packed and labelled tender coconut water | 12% | 5% | Cheaper |
| Diabetic foods | 12% | 5% | Cheaper |
| Packed drinking water (20L bottles) | 12% | 5% | Cheaper |
Election Year Push to Ease Inflation and Help Consumers
This tax revision comes at a politically sensitive time. Ahead of upcoming elections, lowering GST on essential goods could boost public mood and ease inflation worries.
Reducing the 12% slab would be the most significant GST change since the system started in 2017. The government aims to position itself as a champion of the common man by making daily-use items more affordable.
GST Council to Decide Final Tax Structure Changes
The GST Council, led by the Union Finance Minister and state finance heads, will meet soon to discuss this proposal. The 56th meeting will address whether the 12% slab stays or is removed.
If the slab is abolished, the council will decide which items move to the 5% or 18% GST brackets. This decision requires a 15-day advance notice before implementation.
Impact on Households and Markets Could Be Significant
A successful GST revision could improve purchasing power for millions of Indians. Lower taxes on daily essentials would reduce household expenses and possibly increase demand for these products.
Market analysts see this reform as a strategic move to support consumers and stimulate economic activity during a challenging time.
What You Should Know
If you frequently buy items like toothpaste, sanitary products, or kitchen tools, watch for possible price drops soon. This change could bring meaningful savings to many households.
Stay tuned for official announcements from the GST Council following their upcoming meeting.
