Nirmala Sitharaman to chair GST Council meeting: What's likely to get cheaper?

The meeting will be held in participation of the union and state Finance Ministers for a singular agenda of the reforms. 

The GST reform is considered a way to boost the consumption and woo the traders in wake of the 50 percent tariffs imposed by US President Donald Trump on imports from India. 

• Many food and packaged items such as milk powder, noodles, oils, fats, sugar, jam, honey, chocolates, confectionery, processed foods, cakes, cookies, butter, condensed milk, ghee, cheese, biscuits, chips, ketchup, mayonnaise, packaged juices, pasta, noodles, and namkeens are expected to move to the 5% slab
• Everyday personal care items like toothpaste, tooth powder, soaps, shampoo, and hair oil are also likely to see a reduction to 5%
• General consumer necessities such as pencils, umbrellas, bicycles, hair pins, exercise books, maps, globes may also transition to 5%

• High-ticket household appliances and electronics—air conditioners (ACs), TVs, refrigerators, washing machines, dishwashers—are projected to shift from 28% to 18%

• Small cars (e.g., compact petrol hybrids) are set to drop from 28% to 18%, a move anticipated just before Diwali
• Similarly, motorbikes and scooters, especially commuter models under certain engine capacities (e.g., <350 cc), will be taxed at 18% instead of 28%  

• The insurance sector—specifically health and life insurance premiums—is likely to benefit from reduced GST of 5% or lower
• Insurance contracts and potentially financial instruments may also drop to the lower rate bracket

• Cement could drop from 28% to 18%, aiding construction affordability
• Processed foods, garments (especially above ₹1,000), and footwear are set to benefit from reduced taxation—likely 12% to 5% for affordable categories
• Textiles, fertilizers, farm machinery, and other sectors are expected to benefit indirectly via reduced input costs and improved tax mechanisms
• Daily-use goods, including stationery and educational items, are set to become more affordable (5% slab)