GST Rate Cut 2025: Traders and Customers Weigh the Real Impact
The Union Government’s recent reduction in Goods and Services Tax (GST) rates has stirred debate across wholesale and retail markets. While policymakers argue that lowering tax slabs—placing most essential commodities under the 5% category—will provide direct relief to consumers, traders remain divided on the immediate benefits.
Mixed Signals from Delhi’s Markets
In prominent markets such as Chandni Chowk, Khari Baoli, and Sadar Bazaar, shopkeepers expressed cautious optimism. Several traders suggested that additional GST reductions, combined with simplified compliance for small businesses, could further stimulate economic activity. However, many also pointed out that certain essentials, including milk, yogurt, and ghee, continue to be sold at previous rates despite the tax revision.
Market activity remained muted on Monday, with Navratri festivities and the working week impacting footfall. According to traders, public perception that GST reductions instantly lower prices is inaccurate, as adjustments take time to reflect in billing and supply chains.
Business and Consumer Reactions
While large shopping centers have quickly aligned with the new GST structure and are advertising reduced prices, smaller traders are taking a measured approach. Some have begun passing on benefits to customers, while others argue that the margin of relief is too narrow to make a significant difference in sales.
Consumers, too, are split in their views. While many welcomed lower GST rates as a positive step, others reported limited visible impact on their household expenses.
Outlook
Traders believe that sustained GST reforms—particularly in simplifying processes for micro and small enterprises—will determine the long-term benefits of tax reduction. Until then, the gap between policy changes and customer experience is likely to persist.
