Everyday Essentials to Get Cheaper as Companies Pass on GST 2.0 Benefits

Speedy Summary:

• Price Reduction in FMCG Products: starting September 22, 2025, leading FMCG companies such as Dabur, ITC, Nestle, Amul, and HUL have slashed the prices of daily essentials and food products due to benefits extended from GST 2.0.
• Distribution Efforts: Prices have been revised for products like soaps, shampoos, toothpaste, snacks (namkeen), chocolates (e.g., Nutella), dairy items (butter and ghee), and beverages. Revised stocks are now available across distributors and retail outlets.
• GST 2.0 Structure: the reform replaced the earlier four tax slabs with two-5% for most essential items like food products and FMCGs; non-essential items remain taxed at 18%.
• Examples of Price Cuts:

– Dabur products like Real Juice reduced from ₹130 to ₹122; Red toothpaste from ₹153 to ₹135.
– ITC’s Cow Ghee dropped from ₹1,080/litre to ₹1,010/litre.
– Amul Butter now costs ₹58 per 100 gm instead of ₹62; ice cream prices adjusted as well.
– Vicks Inhaler reduced by Procter & Gamble from ₹69 to ₹64.
– Ferrero slashed Nutella (350g) by ₹50 to a new price of ₹399.

• Industry Impact: Festive season sales expected to surge due to lower prices amidst a challenging phase marked by inflation and low urban consumption in earlier quarters.
• Recovery Outlook Report: FICCI estimates potential short-term revenue loss offset by broader consumption growth spurred by affordability.

Indian Opinion Analysis:

The implementation of GST 2.0 has introduced clear benefits for consumers through significant reductions in essential product prices while streamlining taxation into simpler slabs. This development is likely aimed at boosting consumer sentiment ahead of India’s critical festive season-a period when household spending typically accelerates.

For businesses operating in the FMCG space that recently faced inflationary pressures on inputs alongside stagnant urban demand growth rates this move potentially marks an crucial turning point towards recovery-with expectations being tied closely toward exponential post-festive-periods-consumption momentum driven structurally-transparent-affordable accessible pricing setups enacted proactively-framework