Slicing GST, spreading gains

Summary: Small shifts in policy can create ripple effects that go far beyond the checkout counter. What looks like a minor tweak for consumers may, over time, shape habits, loyalty and long-term growth. The real story is how steady, compounding changes often outlast flashy headlines. If you’re like me, you too probably do a quick mental calculation when your favourite tea or biscuit gets cheaper in a store or an online sale. Perhaps this is a habit formed from growing up counting every rupee or listening to ‘money doesn’t grow on trees’ lessons drilled into us. The recent goods and services tax (GST) cuts have brought this relief to consumers and even investors of FMCG companies. The government has trimmed GST on branded, packaged tea, tea bags and biscuits from 12 per cent to 5 per cent. Milk is now entirely tax-free, from a 5 per cent rate earlier. You may not see shoppers rushing to checkout, but as every thrifty buyer knows, small savings encou

This article was originally published on October 01, 2025.