GST Cuts Begin in Varanasi: Locals Celebrate 'Savings Festival'

The new GST rates announced by Prime Minister Narendra Modi came into effect on Monday, bringing relief to citizens in Varanasi. Locals are calling it a ‘Savings Festival,’ as taxes on daily essentials and key items have been reduced.

Temple priests, shopkeepers, and restaurant owners welcomed the move. Restaurant owner Sheetala Prasad Upadhyay said it will make items like cheese, butter, pulses, and rice more affordable. Grocery store owner Vinod Kannaujiya called it a relief for common people, while temple priest Tulsi said the timing with Navratri makes it spiritually significant.

Under the revamped GST system, around 370 products are now cheaper. Over 50 food items, including milk, paneer, breads, and biscuits, now have zero tax. Essential medicines, medical devices like glucometers, and therapies for serious diseases are also exempt or taxed lower.

Stationery items, toiletries, and services such as haircuts, gyms, and yoga classes now face lower or no GST. Electronics and kitchen appliances like TVs, air conditioners, and washing machines are taxed at 18%, down from 28%.

To balance revenue, the government merged cess into GST and set high taxes on luxury and sin goods like cigarettes, tobacco, and aerated drinks.

Finance Minister Nirmala Sitharaman said the changes aim to put more money in people’s hands and boost the economy by about ?2 lakh crore.