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GST Rate Cuts: A Festive Boost or Just a Business Boon? Netizens Debate the 'Diwali Gift'

  • Nishadil
  • September 04, 2025
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  • 2 minutes read
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GST Rate Cuts: A Festive Boost or Just a Business Boon? Netizens Debate the 'Diwali Gift'

As the festive season approached, the nation eagerly anticipated a much-needed economic uplift. The government's announcement of Goods and Services Tax (GST) rate cuts, particularly on essential items and key industries, was swiftly dubbed a 'Diwali gift' by many. The sentiment online was a mixture of cautious optimism and palpable relief, with countless netizens hailing the move as 'very badly needed relief' that could ease the burden on household budgets.

The 52nd GST Council meeting brought forth several significant decisions.

For instance, the GST on millet flour, a staple in many Indian households, was reduced to 0% when sold loose, and 5% for branded, pre-packaged varieties. This move was celebrated as a boost for healthy eating and local produce. Additionally, the levy on molasses, a byproduct of sugar production with various industrial uses, saw a dramatic reduction from 28% to 5%, a decision expected to benefit the cattle feed industry and potentially lower input costs.

Another major point of discussion, although without an immediate rate change, was cement.

While the industry had hoped for a reduction, the council decided to maintain the existing rates. However, discussions around its future taxation kept the conversation alive. The much-debated online gaming sector also received clarification on its 28% levy, with the council asserting that the tax would apply to the full face value of bets placed, not just platform fees, a move that sparked both industry concern and some public acceptance given the revenue generation potential.

However, amidst the initial cheer, a crucial question began to echo across social media platforms and public forums: will these rate cuts genuinely translate into lower prices for the end consumer? Or will businesses simply absorb the savings, leading to fatter profit margins without passing on the benefits? This skepticism is rooted in past experiences where policy changes aimed at consumer welfare have not always resulted in tangible price reductions at the retail level.

The debate highlights a fundamental challenge in policy implementation: ensuring that the intended beneficiaries actually receive the advantages.

For many, the true measure of this 'Diwali gift' will be seen not in the government's announcements, but in the price tags at local markets and the final bills consumers pay. Only then will the genuine impact of these GST rate reductions be felt, truly illuminating whether this festive boost is a universal benefit or primarily a boon for businesses.

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