Indian retailers slash prices on low-cost goods ahead of a 5% GST cut starting Sept. 22, 2025.

Indian retailers are lowering prices on everyday essentials and apparel under ₹2,500 ahead of a major GST rate cut effective September 22, 2025, with goods like snacks, soaps, shampoos, and clothing now taxed at 5% instead of 12% or 18%. Companies including Hindustan Unilever, Procter & Gamble, and Lifestyle International are absorbing some costs to pass full tax savings to consumers, offering early discounts and updating pricing on shelves and e-commerce platforms. The government’s simplified three-tier GST structure—5%, 18%, and 40%—aims to boost consumption, reduce inflationary pressures, and improve compliance, with benefits expected to extend beyond lower taxes to increased disposable income and stronger retail demand, especially during the festive season.