Festive Bonanza: TVs, Hotel Stays, Cars and Daily Essentials Get Cheaper as GST Rate Cuts Kick In

The festive season has opened with what the government is calling a “GST Bachat Utsav,” as sweeping changes to the goods and services tax (GST) kicked in from September 22. Consumers are already seeing lower prices on everything from hotel rooms and electronics to daily groceries, medicines and even automobiles. Here’s a look at what has gotten cheaper for you this festive season.

Cheaper stays and dining out

According to a PTI report, travellers booking hotel rooms priced up to Rs 7,500 a night are saving up to Rs 525 per room as the GST rate has been reduced from 12 per cent to 5 per cent without input tax credit.

The Hotel Association of India says the 7 per cent cut in effective tax will boost the mid-market segment, where demand from India’s growing middle class is strongest. Hoteliers argue the move will not just relieve travellers but also allow reinvestment in innovation and services.

Big discounts on televisions and electronics

Television makers, including Sony, LG, and Panasonic, have announced steep reductions across models to pass on the GST benefit. Depending on size and features, prices are down between Rs 2,500 and Rs 85,800.

Sony has lowered MRPs by Rs 5,000 to Rs 71,000 across its Bravia range, with its 98-inch model now costing Rs 8.29 lakh instead of Rs 9 lakh.

LG has slashed rates by up to Rs 85,800, bringing its 100-inch TV down to under Rs 5 lakh.

Panasonic has trimmed tags by Rs 3,000 to Rs 32,000, with significant drops on 55 and 75-inch models.

With the duty cut on TV sets above 32 inches (down to 18 per cent from 28 per cent), manufacturers are betting on a surge in festive sales, especially for bigger screens and bundled products like soundbars and speakers.

Groceries, medicines and essentials see relief

According to government estimates, household grocery bills could shrink by as much as 13 per cent. Items like toothpaste, soap, shampoo and medicines have shifted to the 5 per cent bracket, making them cheaper by 7 to 12 per cent. Stationery, clothing and footwear also fall in the same savings range.

Cars, two-wheelers and farm equipment

For big-ticket items, the savings are striking:

• Small car buyers may save up to Rs 70,000.

• Tractors up to 1,800 cc will now be cheaper by about Rs 40,000.

• Scooters and bikes up to 350 cc will see a price drop of around Rs 8,000.

• Air conditioners and large TVs also benefit, with savings of Rs 2,800-Rs 3,500 each.

Insurance becomes more affordable

Individual health and life insurance policies have been exempted from GST altogether starting September 22. This is expected to help insurance buyers save of up to 18 per cent on premiums.

A political and economic backdrop

Prime Minister Narendra Modi has framed the reform as a double bonanza for households, when combined with the new income tax exemption up to Rs 12 lakh announced in the Budget.

He estimates annual savings of Rs 2.5 lakh crore across households. “This festive season, the people have received a double bonanza,” he said, urging consumers to choose Indian-made products while shopping.

The government is hoping these changes will push consumption at a time when exports face headwinds from global tariffs. Opposition-ruled states, however, have accused the Centre of passing the revenue loss burden onto them while claiming political credit for the cuts.

Now, retailers and manufacturers are preparing for higher demand during Navratri and Diwali 2025, as households might try to purchase more, given lower prices across a wide spectrum of goods and services.