GST Rate Cuts to Take Effect in Two Days: How Retailers and Companies Are Preparing

With just two days left for the new Goods and Services Tax (GST) rates to come into effect on September 22, 2025, industries ranging from FMCG and pharma to automobiles are gearing up for the transition. Consumers are expecting a reduction in the prices of several everyday products, but the pace at which these benefits reach customers may vary depending on sector readiness.

Pharma Retailers Face Billing and Relabeling Challenges

One of the most immediate challenges is being felt in the pharmaceutical sector. Retail chemists and drugstores are required to sell medicines at reduced prices in line with the revised tax structure. However, shopkeepers are facing difficulties with billing software updates and product relabeling.

Piyush Tyagi, a Delhi-based pharmacy owner, explained, “We’ve received the updated price list from distributors, but updating our billing systems and relabeling each medicine pack is time-consuming. Customers expect instant reflection of new rates, so we must be prepared to meet their demands.”

To ease this transition, the All India Organisation of Chemists and Druggists (AIOCD) has asked pharmaceutical companies to issue QR code-based price lists. This move will allow retailers to quickly verify revised prices without having to relabel each stock unit. Smaller chemist shops have also been directed to sell products at the reduced MRP, even if older packaging reflects higher rates—something that could cause confusion at billing counters during the initial days.

FMCG Distributors Updating Supply Chains

The fast-moving consumer goods (FMCG) sector is also adjusting to the upcoming tax cut. Distributors are updating warehousing and supply chains, but industry players warn that it could take a little longer for the benefits to fully pass on to consumers.

Pushpendra Pratap, owner of FMCG distribution firm Aradhya Enterprises, said, “Companies have started sharing revised MRP lists with us. While new stock will carry updated pricing, relabeling existing inventory cannot happen overnight. Customers should expect to see the impact gradually rather than instantly.”

Auto Industry Better Prepared

Unlike FMCG and pharma, the automobile sector appears to be more prepared for the GST rate reduction. Several car manufacturers, including Maruti Suzuki, Tata Motors, Mahindra & Mahindra, and Hyundai, have already announced revised price lists ahead of September 22.

Dealerships are ready to issue invoices reflecting the new GST rates immediately after implementation. Deepanshu Singh from Karma Hyundai confirmed, “From September 22, invoices for new cars will automatically show the revised GST. Customers are already inquiring about the exact savings they will get if they purchase after the new rates take effect.”

Industry experts point out that the timing could boost automobile sales significantly. The festive season begins with Sharadiya Navratri, followed by Dussehra, Dhanteras, and Diwali. Automakers are hopeful that reduced prices coupled with festive demand will help recover sales, which have been sluggish since mid-August.

Government Push for Consumer Benefits

The central government has urged companies across sectors to ensure that the tax reduction translates into lower consumer prices. The Prime Minister had first announced the GST rate cut during his Independence Day speech on August 15. Since then, industries have been working to adjust systems, revise pricing, and prepare for compliance.

What Consumers Should Expect

• Medicines: Expect lower prices, though pharmacies may face initial billing and relabeling delays.

• FMCG Goods: Price cuts may be visible gradually as new stock enters the market.

• Automobiles: Customers buying after September 22 will see immediate savings on invoices.

Final Word

The implementation of the revised GST rates is expected to bring noticeable relief to consumers. While FMCG and pharma sectors may take some time to reflect the changes fully, the auto industry is set to deliver benefits immediately. With the festive season around the corner, the timing of this tax cut could provide a significant boost to consumer spending and market sentiment.