Major Relief for Middle Class: Government Plans GST Cut on Essentials Like Clothes, Shoes, and Kitchen Items

12% GST slab may be scrapped entirely; essential goods like toothpaste, cycles, and pressure cookers could soon attract just 5% tax

In a move aimed at easing the financial burden on India’s middle and lower-income families, the central government is considering a major overhaul of the Goods and Services Tax (GST) structure. According to recent media reports, everyday essentials such as toothpaste, pressure cookers, shoes, clothes, cycles, and other commonly used household products may soon see a significant reduction in their GST rates.

Currently taxed under the 12% GST slab, these items could soon be shifted to the lower 5% category. This potential change is part of the government’s broader efforts to curb inflation and bring tangible relief to the general public—particularly those from middle-class and economically weaker sections.

Essential Items to Become Cheaper

As per a report by NDTV, the government is actively working on reducing GST on several day-to-day items that are staples in Indian households. These include:

• Toothpaste and tooth powder

• Umbrellas

• Kitchen utensils

• Electric irons and geysers

• Bicycles

• Ready-made garments

• Footwear

• Agricultural tools

• Vaccines and hygiene products

These are items primarily used by the middle class and lower-income groups. The government is reportedly evaluating two main options: either completely removing the 12% GST slab or moving the listed items into the 5% tax bracket.

Such a revision is expected to directly impact household expenses and make everyday goods more affordable for millions of Indians.

Significant Financial Impact on Government

If the proposal gets implemented, it could cost the government an estimated ₹50,000 crore annually. Despite the substantial fiscal hit, reports suggest that the Centre is prepared to shoulder the burden in order to pass on the benefits to the masses.

However, it’s worth noting that the central government cannot make this decision unilaterally. Any changes to the GST structure must be approved by the GST Council—a constitutional body responsible for making recommendations on tax rates, exemptions, and slabs.

Sources indicate that the issue is likely to be discussed in the upcoming 56th GST Council meeting scheduled later this month. A final decision could emerge from that session, determining the future of the 12% GST slab.

What Currently Falls Under the 12% GST Slab?

The 12% GST slab mainly includes goods that are neither classified as luxury nor as essential commodities. These are moderately priced items typically used by average consumers. Some of the notable products currently taxed at 12% include:

• Toothpaste and tooth powder

• Umbrellas

• Kitchen utensils and cookware

• Electric irons and geysers

• Bicycles and sewing machines

• Certain ready-made garments (based on fabric type and price)

• Footwear

• Agricultural equipment

• Sanitary napkins and hygiene products

• Furniture and mattresses

By reducing the tax on such items, the government aims to enhance affordability and ease the cost-of-living pressure for families.

Conclusion

If the GST revision goes through, it would mark the second major tax relief package from the government this year. At a time when rising living costs continue to strain household budgets, especially in urban and semi-urban areas, this move could provide much-needed breathing room for India's middle class.

All eyes are now on the GST Council’s upcoming meeting. If approved, the restructured tax slabs could be implemented soon—making essential items cheaper and reinforcing the government’s commitment to inclusive economic growth.