New GST Slab Takes Effect: Pune Anticipates Lower Prices
With the revised Goods and Services Tax (GST) rates set to roll out, Pune residents and businesses are hopeful for reduced prices across various sectors, from restaurants to small cars.
GstPuneReal EstateDairy ProductsAutomobile IndustryReal Estate PuneSep 21, 2025
Ganesh Shetty, president of the Pune Restaurants and Hoteliers Association (PRAHA), said the reduction in the GST rates of Paneer and other milk products are expected to help them revise their rates in the menu. “Our major concern was the high GST rates in Paneer and other milk products. Now that these rates are being reduced, we expect our input prices to come down. We will certainly pass it on to the consumers,” he said. However, the rate decrease would come post Diwali as at present prices of all green vegetables are high, so chances of an immediate correction are slim. Shetty said once the prices of green vegetables stabilize, the industry would pass on the benefit to the customers.
On Sunday, Prime Minister Narendra Modi in his address to the nation urged corporates to pass on the benefits of the GST rate revision to consumers. The biggest cuts are in the Fast Moving Consumer Goods (FMCG), household goods, and small cars, which would benefit from the cut. The GST council in its September 3 meeting had announced these cuts, which has been welcomed by the industry overall.
The Society of Indian Automobile Makers (SIAM) has welcomed the move, with Shailesh Chandra, chairman, saying it would boost consumption. “This timely move is set to bring renewed cheer to consumers and inject fresh momentum into the Indian Automotive sector. Making vehicles more affordable, particularly in the entry-level segment, these announcements will significantly benefit first-time buyers and middle-income families, enabling broader access to personal mobility. We also thank the Government of India for continuing with the GST rate of 5% on Electric Vehicles, being a major automotive hub, the companies and its vendors hope this will help in sales,” he said. Girish Wagh, executive director of Tata Motors, said the company would pass on the entire benefit to consumers.
The spill-out effect, according to Sandeep Belsare, chairman of the Pimpri Chinchwad Small Scale Industries Association, would be felt by them. “We hope it would translate into higher order books, but the effect would be felt in some time,” he said. For the small-scale industries who are in the service sector, the slashing of GST would help them realize more business. “Overall, we hope it would increase our businesses,” he said.
For the dairy and milk industry, the GST exemption in Paneer and other dairy products would mean consumers would get them cheaper. Nikhil Chitale, managing partner of Chitale Dairy, said from Monday, their 200 grams of Paneer packet would be priced at Rs 90 instead of the earlier price of Rs 93. Similarly, the 500 ml jar of cow’s ghee would be available at Rs 380 instead of the earlier price of Rs 400. “Consumers will have wider access to branded and packaged milk and dairy products. As the tax burden reduces, customers are expected to prefer branded and packaged products over loose ones,” he said.
Anuj Puri, chairman of real estate consultancy firm Anarock Group, said the new GST rates would bring in positive news for the sector. “Reduced GST on construction materials like cement can reduce construction costs by as much as 3-5%. Developers, especially those engaged in creating affordable housing, will get major relief in terms of cash flows and margins. ANAROCK Research reveals that the affordable housing category (below Rs 40 lakh) has seen its share of total sales decline from 38% in 2019 to just 18% in 2024. The share of new supply dropped even more dramatically from 40% in 2019 to just 12% in H1 2025. The reduced construction costs, if passed on to homebuyers, can boost demand in these segments,” he said.
Indraneel Chitale, partner of Chitale Bandu and Sons, said Bhakarwadi, the signature snack of the company, would be cheaper by Rs 20/kg. “The per kg price of the savoury would be Rs 400 now as compared to the previous price of Rs 420,” he said.
Kapil Gandhi, convenor of CREDAI – the body of realtors – said construction cost benefits would be passed on to the end users as well.
Frequently Asked Questions
What are the major sectors expected to benefit from the new GST rates?
The major sectors expected to benefit from the new GST rates include the Fast Moving Consumer Goods (FMCG), household goods, small cars, dairy products, and real estate.
How will the reduction in GST on dairy products affect consumers?
The reduction in GST on dairy products such as Paneer and cow’s ghee will make these items cheaper for consumers, with prices expected to drop by a few rupees per unit.
What is the expected impact of the new GST rates on the automobile industry?
The new GST rates are expected to make vehicles more affordable, particularly in the entry-level segment, which will benefit first-time buyers and middle-income families.
How will the real estate sector benefit from the new GST rates?
The real estate sector will benefit from reduced GST on construction materials like cement, which can reduce construction costs by 3-5%. This can boost demand in the affordable housing category.
When are the new GST rates expected to take effect?
The new GST rates are expected to take effect from Monday, as announced by the GST council in their September 3 meeting.
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