GST Cuts Drive Sharp Price Drops in Durables and Automobiles

• Latest GST rate cuts significantly reduced prices of big-ticket items like cars, two-wheelers, and household durables.
• Consumer electronics and automobile prices fell sharply (3.6% average) between September and December 2025, a stronger pass-through than in previous years.
• Automobiles saw the steepest declines: motor cars dropped 7.3%, motorcycles and scooters 4.6% cheaper.
• Household durables like washing machines (-4.2%), ACs (-3.0%), TVs, and refrigerators (-2.2%) also saw meaningful price reductions.
• Everyday consumables like candy (-1.8%), biscuits, and chocolates (-1.2%) showed limited pass-through despite GST cuts.

Why It Matters: GST rate cuts led to significant price reductions in durables and automobiles, but less so for everyday consumables.