Unpacking the New GST: A Parent's Guide to a Cheaper Shopping List

By Aishwarya Rao|5 - 6 mins read| September 25, 2025

You're standing in the grocery store checkout line, watching the numbers climb on the register, and thinking, "When did feeding a family become so expensive?"

Here's some genuinely good news that's going to make your wallet happier; the recent GST reforms are about to make your shopping trips significantly lighter on your budget.

If you're like most parents, you probably don't spend your free time (what free time?) reading tax policy updates. However, this one's worth understanding because it will directly impact almost everything on your shopping list, from your baby's formula to your morning coffee.

What Actually Gets Cheaper?

Here are the changes that matter most when you stack the shopping basket:

  • Everyday groceries & breakfast items: biscuits, corn flakes, cereals, pasta, many packaged snacks and bakery products have been moved to the lower 5% slab (or nil in some cases).
  • Dairy & spreads: butter, cheese, and some dairy spreads moved down to 5% (and some products like UHT long-life milk moved to nil).
  • Drinks & pantry staples: coffee, some packaged juices and bottled water now attract lower GST.
  • Personal care & baby-care basics: soaps, shampoos, toothpaste, toothbrushes, talcum powder, hair oil — these are now in the 5% bracket.
  • Household & school items: feeding bottles, tableware, kitchenware, basic stationery (exercise books, pencils), and some small household goods have low or nil tax.
  • Clothes & footwear (mass market): many mass-market textiles and shoes have moved to 5%, making everyday clothing shopping slightly cheaper.

Note: The list above focuses on the typical purchases made by parents. There are many more items covered; this provides an immediate picture.

What Might Become Costlier?

“Sin” goods, like many carbonated and caffeinated aerated drinks, are now in a higher 40% bracket. For many popular soft drinks, the end price may not change much because of how they were taxed earlier, but some sweetened and flavored beverages that were taxed at 18% will get pricier.

In short, don’t expect big savings on sodas and similar drinks.

What Does This Mean for Your Family's Shopping List?

  • Pantry & snacks: expect biscuits, noodles, sauces and cereals to be cheaper. Consider buying slightly larger packs for staples.
  • Dairy & baby food: butter, cheese and UHT milk lines should be more affordable. Fresh pouch milk often wasn’t under GST, so check labels (some items won’t change).
  • Personal care & baby items: soaps, shampoo, toothpaste and feeding bottles will cost less. This is immediate relief for families with small kids.
  • School & stationery: pencils, notebooks and basic study aids are cheaper or zero-rated (good timing if you have school shopping coming up).
  • Big buys & appliances: TVs, ACs, and many other appliances moved from 28% to 18% (a nice savings when planning replacements). If a big purchase was on your list, recheck prices after Sept 22.

Tips for Parents

  1. Check the effective date: most cuts apply from Sept 22, 2025, so compare prices before and after.
  2. Delay non-urgent, non-perishable buys (biscuits, packaged snacks, larger personal-care stock) until the new rates are in. You may save 10–15%.
  3. Watch pack size vs. price: Brands may offer bigger packs instead of a lower sticker price; either way, you get more value.
  4. Prefer organized retail for variety: more products (especially dairy and spreads) are expected in organized stores as prices fall—better choice and stock reliability.
  5. Compare unit price, not just MRP: look at cost per 100g/ml or per piece to spot real bargains.
  6. Use school supplies window: many stationery items are zero-rated, so buy school supplies now or just after the change.
  7. Be careful with sodas and sweet drinks: these may not get cheaper and might cost more.
  8. Keep a small “GST watch” list: mark 8–10 things you buy every month and compare their prices on Sept 23 to see real savings.

Quick Example of What Savings Could Feel Like

If a family spends ₹12,000 on groceries and essentials each month, a 10% saving is ₹1,200 per month (₹14,400 per year). At 15%, that’s ₹1,800 a month (₹21,600 a year). Small changes add up fast. Think of extra school supplies, a family treat, or adding to your savings.

GST Changes at a Glance: Family Shopping Summary

Category Items Old GST Rate New GST Rate Impact on Families 
Dairy & Milk UHT milk, packaged paneer, butter, ghee, cheese, condensed milk, plant-based & soya milk drinks 5–12% Nil–5% Breakfast basics cheaper 
Bakery & Snacks Pizza bread, chapati, parotta, khakhra, pastries, biscuits, cakes, pasta, noodles, namkeen, cornflakes, extruded products 12–18% Nil–5% Lunchbox & snack items cheaper 
Sweets & Confectionery Sugar confectionery, cocoa powder, chocolates, sugar-boiled sweets, jam, sauces, jellies, fruit pulp, marmalades 12–18% 5% Dessert treats more affordable 
Dry Fruits & Nuts Almonds, dry fruits & nuts 12%-18%5% Festive & healthy snacks cheaper 
Soups & Beverages Soups, broths, vegetable juices, fruit juices, milk-based drinks (non-carbonated) 12–18% 5% Kids’ drinks & soups cheaper 
Personal Care Soap, shampoo, toothpaste, toothbrush, talcum powder, hair oil 18% 5% Toiletries & baby care basics cheaper 
Household Goods Feeding bottles, tableware, kitchenware, utensils, umbrellas, combs, bamboo furniture 12% 5% Household items easier on pocket 
Stationery & School Notebooks, exercise books, graph books, pencils, sharpeners, crayons, maps, charts, globes, erasers 5–12% 0% School supplies now tax-free 
Clothes & Footwear Mass-market footwear (not exceeding Rs.2500 per pair), textiles 12% 5% Lower costs for family wear 
Healthcare Life-saving drugs, medical oxygen, thermometers, glucometers, test strips, spectacles 12–18% 0–5% Healthcare essentials cheaper 
Appliances TVs, ACs, dishwashers, large appliances 28% 18% Long-term savings on gadgets 
Transport Motorcycles ≤350cc, small hybrid cars, EVs, auto components 28% 18% Affordable mobility 
Agriculture Tractors, irrigation tools, fertilizer inputs, biopesticides, farm machinery 12–18% 5% Relief for rural families 
Travel & Lifestyle Hotels (≤₹7,500/night), economy flights, insurance, gyms, salons, yoga services 12–18% 5%Lower cost of travel & wellness 
Gets Costlier Aerated/caffeinated drinks, soft drinks, luxury vehicles, tobacco, racing/gambling services 28% 40% Luxury/leisure spends costlier 

Conclusion

This GST revamp is a clear win for many everyday family purchases: food, baby basics, personal care, stationery, and even some appliances. Keep receipts and check labels around the effective date (Sept 22, 2025). Watch how brands and stores pass on the benefit (sometimes it’s a lower price, sometimes it’s more product). Either way, smart shopping after the change can stretch your family budget further.


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