Introduction

From 22 September 2025, India’s Goods and Services Tax (GST) system undergoes one of its biggest overhauls since its introduction. The four-tier structure of 5%, 12%, 18%, and 28% has been simplified into two main slabs — 5% and 18% — with a new 40% slab introduced for “sin goods” and luxury items. The change is expected to make essentials and daily-use items cheaper, while luxury and high-end goods become costlier. Bengaluru, home to major dairy and consumer markets, will see some immediate changes in pricing.

What Gets Cheaper

• Dairy Products:

  • Ghee, butter, cheese → cut from 12% to 5%.

  • Karnataka Milk Federation (KMF) confirms reduced prices for Nandini ghee, butter, and cheese.

• Packaged & Preserved Foods:

  • Chocolates, bakery products, sauces, muffins, cakes, cookies, and ice cream → down from 18% to 5%.

• Personal Care & Home Consumables:

  • Shampoos, soaps, toothpaste, detergents → moved to 5% from 12–18%.

• Electronics & Appliances:

  • LED/LCD TVs, washing machines, refrigerators, air conditioners → down from 28% to 18%.

• Construction Materials:

  • Cement and related items → lower slab benefits, expected to make housing slightly cheaper.

What Gets Costlier

• Sin Goods & Luxury Items (40% Slab):

  • Cigarettes, pan masala, gutkha, sugary aerated drinks.

• Automobiles:

  • Two-wheelers above 350cc (big bikes) → now at 40%.

  • Luxury SUVs and cars (larger engine capacities, premium models) → higher taxation.

• Imported Gadgets & Premium Smartphones:

  • Less favorable slab adjustments; may see price hikes.

Bengaluru-Specific Impacts

• KMF (Nandini Brand):

  • Confirmed price cuts on ghee, butter, processed cheese.

• Bakery & Confectionery:

  • Lower costs at local bakeries and supermarket shelves for cakes, chocolates, cookies.

• Milk & Curd:

  • No major change — milk remains zero GST, curd stays at 5%.

Why Checking MRPs Matters

• Old stock with pre-reform MRPs may still be on shelves.

• Retailers may correct MRPs via stickers or bills, but some may charge older, higher rates.

• The government has allowed old packaging until 31 March 2026, or until existing stock clears.

• Tip for consumers: Always check your bill and MRP to ensure new GST benefits are passed on.

Conclusion

The GST overhaul simplifies taxation, making daily essentials, dairy, and household goods cheaper, while pushing luxury and sin goods into higher brackets. For Bengaluru, immediate relief is visible in Nandini dairy products and bakery items. However, consumers must remain vigilant about MRPs during the transition. The reform balances affordability for the common man with stricter taxation on luxury and discretionary spending.