People hail GST relief on essentials, traders warn of implementation issues

The Central Government’s overhaul of the Goods and Services Tax (GST) system has been met with optimism in Hyderabad, where residents and traders say the changes will ease household budgets and simplify business compliance.

The reforms have slashed taxes on hundreds of consumer goods from soaps to small cars and streamlined the GST structure into two slabs of 5% and 18%, with zero tax on some items and 40% reserved for luxury and “sin” items.

Everyday relief

For many Hyderabadis, the cuts are already being translated into personal wins.

“This restructuring is a welcome and long-overdue change,” said Pavan Kumar, 27, an economics researcher from Moosarambagh.

“GST on a packet of aloo bhujia or a plate of rasmalai will now be 5% instead of 12%, which makes me very happy. Even for bigger purchases like ACs or small cars, affordability improves. If I construct a house, lower cement costs mean I can spend savings on beautifying it. Also, now with tax at 5% on rooms priced up to ₹7,500, I can extend my holiday budget a bit now thanks to cheaper rooms.”

Anita Rao, 40, a schoolteacher from Marredpally, echoed the sentiment. “I’ve been paying health insurance premiums for nearly a decade, and every renewal feels like a squeeze. Removing GST is a relief. It finally recognises that insurance is a necessity, not a luxury. That saving may not look huge on paper, but for families like mine it makes healthcare planning a lot more affordable.”

Families juggling childcare also welcomed the move. “Diapers, baby lotion, even biscuits were steadily eating into my monthly budget,” said Nithin Raj, 32, a marketing professional from RTC X roads. “Every rupee counts when raising a child. This drop on essentials is the first time in years I feel the system thought about parents.”

For small business owners, affordability translates into competitiveness.

“As someone who runs a salon, I’m constantly stocking up on personal care items like shampoos, soaps and skincare,” said Farah Begum, 29, of Bowenpally.

“With lower GST, I can keep services affordable and stay competitive in a market where clients are watching every rupee,” she added.

But not everyone saw it as unqualified relief. Rajasekhar P., an IT employee from KPHB, said, “Cutting GST on insurance and basic stuff people use every day makes sense, it shouldn’t have been taxed in the first place. With a recession coming and the U.S.  tariff effect hitting us, they’re cutting it now to give small businesses and regular people some relief. But this still doesn’t guarantee that common people won’t feel the effects of the recession.”

Traders cautious

“Though the new structure applies from September 22, updated MRP tags will take at least 2-3 weeks to reach us. Until then, we’ll sell at current rates. Demand won’t suddenly double - if a family buys 20 kilogram of flour, they won’t start buying 40kg just because it’s cheaper,” said Srinivas, who runs a general store in Ramanthapur.

Rekha, who manages a wholesale store nearby, noted that new consumer behaviour could strain supply chains.

“Wholesalers and retailers will have to ramp up production and transport, requiring fresh investment. Some items, like aerated drinks taxed at 40%, may see a drop in demand, but essentials and utilities will definitely pick up.”

For now, Hyderabad appears largely positive, with both households and shopkeepers seeing the reforms as a rare instance where tax policy touches everyday life. Yet, as traders warn, much depends on how quickly new prices reach shelves and whether businesses can adapt to shifting demand.