New Delhi, Sept. 4 -- The Fast-Moving Consumer Goods (FMCG) sector is set to benefit after the Goods and Services Tax (GST) Council approved lowering the tax rate on several essential items to 5%.

The change, effectivefrom September 22, 2025, is expected to reduce prices and encourage consumption, especially among rural and semi-urban households.

Items such as soaps, toothbrushes, hair oil, namkeen, instant noodles, chocolates, and instant coffee will now attract a 5% GST. Additionally, bread, paneer, and ultra-high temperature (UHT) processed milk have been exempted from GST, making them more affordable for consumers.

Finance Minister Nirmala Sitharaman highlighted that the move is aimed at enhancing accessibility to essential goods a...