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India plans at least 10% GST rate cut on 175 products—hybrid cars to ACs: Report
India plans to reduce GST on small hybrid cars to 18% from 28% in boost for Maruti Suzuki and Toyota. GST on personal care products may reduce to just 5%.
Updated on: Sep 1, 2025, 17:06:24 IST
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India plans to cut GST by at least 10 percentage points on nearly 175 products as part of upcoming reforms, Reuters reported on Monday, citing two people aware of the matter.
According to sources,
- GST on personal care products, such as talcum powder, toothpaste and shampoo, will reduce to 5% from 18% at present. That should come as a boost to Hindustan Unilever Ltd. and Godrej Industries.
- GST on consumer electronics, such as ACs and TVs, will reduce to 18% from 28%, benefitting Samsung, LG Electronics and Sony.
- GST on small hybrid cars can be reduced to 18% from 28%, in a big win for Maruti Suzuki India Ltd. and Toyota India.
GST Rationalisation
The GST Council, chaired by Union Finance Minister Nirmala Sitharaman, will meet on 3-4 September to decide on the rationalisation. The sweeping changes to the complex GST regime were triggered by Modi during his Independence Day speech on 15 August 2025, where he vowed to cut taxes on daily items without giving details.
India's finance ministry did not immediately reply to an email seeking comments on this story.
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