"More than 200 commodities will get cheaper": Ravi Shankar Prasad

The GST 2.0 reforms, which the Union Government approved on September 4, have been implemented from Monday.

Under the revised structure, the previous four-tier GST slabs have been consolidated into two main categories: 5 per cent and 18 per cent. Items that were earlier taxed at 12 per cent have been brought down to 5 per cent, while those in the 28 per cent category have been rationalised to 18 per cent. Essential commodities and daily-use items are now taxed at the lowest rate, making them more affordable for households.

"More than 200 commodities will get cheaper. I congratulate PM Modi. His government thinks about 'Sabka Saath, Sabka Vikas' and the Bihar government does the same," Prasad told reporters.

The reform in the Goods and Services Tax structure, which was approved during the 56th meeting of the GST Council earlier this month, is set to come into effect from today. The current four-rate system will be replaced with a streamlined two-slab regime of 5% and 18%. A separate 40 per cent slab has been retained for luxury and sin goods.

This new framework is expected to ease compliance, reduce consumer prices, boost manufacturing, and support a wide range of industries, from agriculture to automobiles and from FMCG to renewable energy. It is intended to lower the cost of living, strengthen MSMEs, widen the tax base, and drive inclusive growth.

In the fast-moving consumer goods (FMCG) and dairy sector, major brands like Amul and Mother Dairy have announced substantial price cuts, reflecting the full benefit of the GST reduction.

Items like milk, butter, ghee, paneer, cheese, ice cream, snacks, and frozen foods have been brought under the 5 per cent slab, due to which 100 g of Amul butter will now cost Rs 58 instead of Rs 62, and Ultra High Temperature milk (UHT) has dropped to Rs 75 per litre from Rs 77. Mother Dairy has also slashed prices on milkshakes, paneer, ghee, and frozen products. (ANI)