Hyderabad: The recent GST rate cut has been welcomed by many traders and consumers in the city. They believe this change could help a family of four save around Rs 500 to Rs 700 each month. The automobile sector also benefits as vehicle prices drop by about Rs 10,000, just in time for festival season. Traders are asking for a simpler GST filing process in future reforms.
The General Merchants Association’s president, Sriram Vyas, mentioned that this GST reform benefits both traders and consumers. Items previously taxed at 12% are now at 5%, potentially reducing tax evasion and increasing government revenue.
Avinash Devda, Secretary of the Kirana Merchants Association, pointed out that middle-class families will economically benefit. This change may also aid industries impacted by Trump tariffs. Essential items like dry foods and dairy are now taxed at 5%, easing the financial burden on these families. Devda estimates that monthly expenses for a family of four, previously Rs 5,000 to Rs 5,500, could now be Rs 4,200 to Rs 4,500. He hopes the next GST meeting will address filing complications.
A manager at a two-wheeler showroom on MG Road noted it’s an ideal time to buy new vehicles. The GST on vehicles has decreased from 28% to 18%, possibly reducing prices by Rs 10,000, depending on the model. S Narasimha Chary, from BN Reddy Nagar, commented that the actual impact will become clearer over time. During this festive season, spending increases, so savings might not be immediately noticeable. Chary is optimistic about future savings with the new GST reforms.
