'Progressive step in making products, services more affordable': Mukesh Ambani welcomes GST 2.0 reforms

Mukesh D Ambani, Chairman and Managing Director of Reliance Industries Limited and Reliance Retail, welcomed the Centre’s second-generation GST reforms, calling them a “historic Diwali gift” for consumers.

Congratulating PM Narendra Modi, Ambani said the GST rationalisation is a “progressive step towards making products and services more affordable, easing operational complexity, lowering inflation, and driving consumption growth across the retail sector”. He noted that with India’s GDP growth reaching 7.8% in the first quarter of the financial year, the reforms could further accelerate the economy, potentially pushing growth closer to double digits.

Isha Ambani, Executive Director of Reliance Retail Ventures Limited, described the new GST regime as transformative, providing relief to household budgets while simplifying compliance for businesses. “Reliance Retail is committed to passing on the entire benefit of the new GST regime to customers from Day 1 across all consumption baskets,” she said.

She added, “The GST reforms reflect the Government’s clear intent to improve ease of doing business and promote consumer welfare. Our pledge is simple: whenever costs go down, our customers must get the benefit in their wallets.”

The rationalisation of GST is expected to impact every stakeholder in the retail value chain, including farmers, MSMEs, producers, suppliers, kiranas, and end-consumers, by reducing costs, keeping inflation in check, and improving efficiency.

GST 2.0 rate cuts

In a festive-season cheer for the aam aadmi, the GST Council, led by Finance Minister Nirmala Sitharaman, has announced sweeping cuts in Goods and Services Tax, effective September 22. The overhaul reduces rates on essential food items, daily necessities, and consumer durables, while ultra-luxury and sin goods will attract a higher 40% tax.

The move simplifies the indirect tax structure from four slabs to two—5% and 18%—aimed at leaving more money in the hands of the middle class, which had earlier benefited from income tax relief up to ₹12 lakh.

Reliance Retail emphasized its commitment to ensuring the benefits reach India’s 1.4 billion people, strengthening consumer confidence and supporting a more inclusive, competitive, and affordable consumption economy.

What is going to be cheap

Analysts say this will boost domestic consumption and encourage bulk buying ahead of Navratri and Diwali, easing pressure on household budgets while cushioning manufacturers from global tariff shocks.

Daily-use staples will see significant relief. Frozen parathas, chapatis, khakhra, pizza bread, and paneer are now GST-exempt. UHT milk, plant-based milk, and soya drinks attract just 5% tax. Butter, ghee, jams, sauces, pre-packed namkeens, cereals, biscuits, chocolates, dry fruits, nuts, and dates also fall under the 5% bracket. Personal care items, including toothpaste, shampoo, hair oil, and combs, along with kitchenware, bamboo furniture, umbrellas, and bicycles, will now cost less.

Consumer durables like large-screen TVs, ACs, refrigerators, and small cars benefit from a cut to 18% GST, down from 28%, further aiding festive-season purchases. Health and life insurance premiums, previously taxed at 18%, are now GST-free, making insurance more affordable and accessible for first-time buyers.

The GST rationalisation is poised to ease costs, encourage spending, and give the middle class a tangible financial boost this festive season.