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With the rollout of the revised Goods and Services Tax structure set to start on Monday, Pune hopes it will result in more savings. From restaurant prices to small cars, the new rates are expected to see a cool down in prices in the coming days.
Ganesh Shetty, president of the Pune Restaurants and Hoteliers Association (PRAHA) said the reduction in the GST rates of Paneer and other milk products are expected to help them revise their rates in the menu. “Our major concern was the high GST rates in paneer and other milk products. Now that is being reduced we expect our input prices to come down. We will certainly pass it on to the consumers,” he said. However, the rate decrease would come post Diwali as at present prices of all green vegetables are high so chances of an immediate correction are slim. Shetty said once the prices of green vegetables stabilize the industry would pass on the benefit to the customers.
On Sunday, Prime Minister Narendra Modi in his address to the nation urged the corporates to pass on the benefits of the GST rate revision to the consumers. The biggest cuts are in the Fast Moving Consumer Goods (FMCG), household goods and small cars which would benefit from the cut. The GST council in its September 3 meeting had announced these cuts, which has been welcomed by the industry over all.
The Society of Indian Automobile Makers (SIAM) has welcomed the move with Shailesh Chandra chairman saying it would boost consumption. “This timely move is set to bring renewed cheer to consumers and inject fresh momentum into the Indian Automotive sector. Making vehicles more affordable, particularly in the entry-level segment; these announcements will significantly benefit first-time buyers and middle-income families, enabling broader access to personal mobility. We also thank the Government of India for continuing with the GST rate of 5% on Electric Vehicles, being a major automotive hub, the companies and its vendors hope this will help in sales. Girish Wagh, executive director of Tata Motors said the company would pass on the entire benefit to the consumers. “Passe
The spill out effect, Sandeep Belsare chairman of the Pimpri Chinchwad Small Scale Industries Association said would be felt by them. “We hope it would translate into higher order books- but the effect would be felt in some time,” he said. For the small scale industries who are in the service sector, the slashing of GST would help them realise more business. “Overall we hope it would increase our businesses,” he said.
For the dairy and milk industry the GST exemption in paneer and other dairy products would mean consumers would get them cheaper. Nikhil Chitale, managing partner of Chitale Dairy said from Monday, their 200 grams of paneer packet would be priced at Rs 90 instead of the earlier price of Rs 93. Similarly the 500 ml jar of cow’s ghee would be available at Rs 380 instead of the earlier price of Rs 400. “Consumers will have wider access to branded and packaged milk and dairy products. As the tax burden reduces, customers are expected to prefer branded and packaged products over loose ones,” he said.
Anuj Puri, chairman of real estate consultancy firm Anarock Group said the new GST rates would bring in positive news for the sector. “Reduced GST on construction materials like cement can reduce construction costs by as much as 3-5%. Developers, especially those engaged in creating affordable housing, will get major relief in terms of cash flows and margins. ANAROCK Research reveals that the affordable housing category (below Rs 40 lakh) has seen its share of total sales decline from 38% in 2019 to just 18% in 2024. The share of new supply dropped even more dramatically from 40% in 2019 to just 12% in H1 2025. The reduced construction costs, if passed on to homebuyers, can boost demand in these segments,” he said
Indraneel Chitale, partner of Chitale Bandu and sons said Bhakarwadi, the signature snack of the company would be cheaper by Rs 20/kg. “The per kg price of the savoury would be Rs 400 now as compared to the previous price of Rs 420/-“ he said.
Kapil Gandhi convenor CREDAI – the body of realtors- said construction cost benefits would be passed on to the end users as well.
