GST 2.0 Is Changing How Much You Pay for Daily Essentials - Here’s What Shoppers Need to Know

Shoppers across India are beginning to feel the effects of GST 2.0 as FMCG companies roll out discounts and price cuts to pass on tax benefits. According to Emkay Research’s Consumer Goods Sector Report , categories such as detergents, shampoos, biscuits, and coffee are already witnessing pricing adjustments that could change consumer buying behavior.

Lower Prices, Higher Value Packs
Consumers buying daily essentials may notice smaller packs getting cheaper. Most FMCG players have trimmed popular price points—such as reducing ₹10 packs to ₹9 or ₹5 packs to Rs 4.5, while future launches are expected to offer more product quantity at the same price. This gives shoppers better value for money during a high-spending festive period.

Discounts During the Festive Season
In anticipation of Diwali demand, companies have rolled out promotional schemes, offering ~10% discounts in categories where GST fell from 18% to 5% and ~5% discounts where it fell from 12% to 5%. “Such promotions have helped secondary sales,” the report highlighted, suggesting consumers will see deeper deals on staples.

Postponed Purchases, Rising Premiumization
Consumers had temporarily postponed purchases in anticipation of lower MRPs. Now, with fresh stock arriving, demand has surged since September 22. Beyond basics, premium segments like coffee, oral care, biscuits, and dairy are set to benefit as shoppers upgrade to better quality products. Emkay noted, “With reduced MRP, there is an expectation of improved growth in the sector.”

Everyday Home-Care Relief Ahead?
FMCG companies are pushing for a further GST reduction on home-care essentials like detergents, floor cleaners, and utensil cleaners. If approved, households could see even more savings on frequently purchased items.

Alcoholic Beverages Benefit from Higher Wallets
On the discretionary side, India’s alco-bev market is also upbeat, with 25 million Indians turning of legal drinking age each year. The report suggests that rising disposable incomes are fueling demand for premium spirits, beer, and even new launches like Indian tequila.

The Consumer Takeaway
While GST 2.0 initially disrupted supply chains, shoppers now stand to gain through cheaper essentials, promotional offers, and better value packs. With festive buying picking up, consumers can expect wider product choices at competitive prices, alongside a push toward premium goods across categories.

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