GST Reform 2025 / From ITC to HUL... these companies have made household items like flour and oil cheaper

GST Reform 2025: The government has recently implemented reforms in the Goods and Services Tax (GST), leading major FMCG (Fast-Moving Consumer Goods) companies to reduce the prices of their products. Hindustan Unilever Limited (HUL), ITC, Procter & Gamble (P&G), and Emami have announced price cuts across various categories. The new prices will be effective from September 22, 2025. These reforms aim to directly pass on the benefit of reduced GST rates to consumers, especially on daily-use items such as soaps, shampoos, toothpaste, baby diapers, razors, and after-shave lotions.

Impact of GST Reforms

The GST Council recently decided to reduce the four-tier rate structure (5%, 12%, 18%, and 28%) to two slabs—5% and 18%—while retaining a special 40% rate for luxury items. Except for cigarettes and tobacco products, the new rates will take effect from September 22, 2025. This rationalization will reduce prices of everyday essentials, food items, and some durable consumer goods such as televisions and air conditioners.

This move is expected not only to enhance consumer purchasing power but also to boost consumption during the festive season and give momentum to the economy. Experts believe the current quarter will reveal the true impact of GST reforms on FMCG revenues, overall consumption, and the broader economy.

Major FMCG Companies Announce Price Cuts

Procter & Gamble (P&G)
P&G has reduced prices on several popular brands such as Vicks, Head & Shoulders, Pantene, Pampers, Gillette, Old Spice, and Oral-B. The revised price list includes:

• Vicks: Action 500 Advance & Vicks Inhaler – from ₹69 to ₹64 (GST reduced from 12% to 5%).

• Shampoos (GST 18% → 5%):

  • Head & Shoulders Cool Menthol (300ml): ₹360 → ₹320

  • Head & Shoulders Smooth & Silky (72ml): ₹89 → ₹79

  • Pantene Hair Fall Control/Deep Repair (340ml): ₹410 → ₹355

• Baby Care: Pampers diapers & baby wipes (GST reduced 12%/18% → 5%).

• Gillette & Old Spice:

  • Shaving cream (30g): ₹45 → ₹40

  • Shaving brush: ₹85 → ₹75

  • Old Spice After Shave Lotion (150ml): ₹320 → ₹284

• Oral-B Everyday Care Toothbrush: ₹35 → ₹30

Emami
Emami has also slashed prices across its Ayurvedic and personal care range, effective September 22, 2025:

• Boroplus Antiseptic Cream (80ml): ₹165 → ₹155

• Boroplus Sandal Soap (125g x 6 pack): ₹384 → ₹342

• Navratna Ayurvedic Oil (180ml): ₹155 → ₹145

• Dermicool Powder (150g): ₹159 → ₹149

• Kesh King Gold Ayurvedic Oil (100ml): ₹190 → ₹178

• Zandu Balm (25ml): ₹125 → ₹118

• Zandu Sona Chandi Chyawanprash Plus (900g): ₹385 → ₹361

Hindustan Unilever Limited (HUL)
India’s largest FMCG company HUL has also cut prices, effective September 22, 2025:

• Shampoos:

  • Dove Hair Fall Shampoo (340ml): ₹490 → ₹435

  • Clinic Plus Strong & Long (355ml): ₹393 → ₹340

  • Sunsilk Black Shine (350ml): ₹430 → ₹370

• Soaps:

  • Dove Serum Bar (75g): ₹45 → ₹40

  • Lifebuoy (75g x 4 pack): ₹68 → ₹60

  • Lux Radiant Glow (75g x 4 pack): ₹96 → ₹85

• Toothpaste: Closeup (150g): ₹145 → ₹129

• Health Drinks:

  • Horlicks Chocolate (200g): ₹130 → ₹110

  • Boost (200g): ₹124 → ₹110

• Food Products:

  • Kissan Ketchup (850g): ₹100 → ₹93

  • Kissan Jam (200g): ₹90 → ₹80

  • Bru Coffee (75g): ₹300 → ₹270

ITC
ITC has decided to pass on the benefits of GST reforms across its entire FMCG portfolio. Executive Director B. Sumant stated that rationalized GST rates will enhance affordability, drive consumption, and boost investment and employment. With a retail presence in nearly 7 million outlets across India, ITC is ensuring that consumers are well-informed about the revised pricing.

Consumer and Economic Impact

These GST reforms and the subsequent price cuts come as a relief for consumers ahead of the festive season. Analysts suggest that this will not only increase consumer purchasing power but also stimulate FMCG sales and overall consumption in the economy. The coming months will be crucial in determining whether these reforms translate into higher company revenues and stronger economic growth.

Companies have shared their revised price lists through official websites and distributors. Consumers are advised to check authorized retailers or company websites for the latest prices and offers.