3 weeks post GST 2.0, most consumers continue to see benefits when buying vehicles and whitegoods; Struggle continues in getting benefits when buying medicines and packaged foods

October 14, 2025, New Delhi: Reforms in Goods and Services Tax (GST), which came into effect from Sep 22, was expected to be a game-changer for the Indian economy as it was expected to make a whole range of products from packaged foods, medicines, white goods, consumer electronic goods and vehicles more affordable. Over three weeks after the revised tax structure, with rates slashed to 5% and 18%, large number of consumers are still waiting to see the promised relief.

LocalCircles, which has been closely tracking consumers’ reaction to the implementation of the new GST rates, found improvement in GST rate implementation on packaged foods and medicines during Week 2, likely because of Government enforcement and products with revised MRPs reached retailers. However, there was still a marked difference between these two categories and categories like whitegoods and automobiles.

In the automobile retail sector, there was a sharp surge in festive buying, with passenger vehicle sales rising 35% year-on-year (YoY) during the nine-day Navratri period (Sep 22-Oct 1 concluding with Dusshera on Oct 2), according to the Federation of Automobile Dealers Associations (FADA).

Through a new survey, LocalCircles has strived to track GST 2.0 implementation and consumer benefits in the third week to find out if there was any improvement. If so, which are the sectors where it has improved. The survey received over 79,000 responses from consumers located in 347 districts of India. 69% respondents were men while 31% respondents were women. 44% respondents were from tier 1, 29% from tier 2 and 27% respondents were from tier 3, 4, 5 and rural districts.

22% consumers surveyed confirmed receiving full benefit of GST rate reduction on packaged food products this week; Another 32% confirmed receiving partial benefit

When compared to the first week, 80% increase has been observed in percentage of consumers who confirmed they got full or partial benefit of GST rate reduction on packaged food products in the second week. To find out the situation in the third week, the survey asked consumers, “GST rate on many packaged food items was reduced from 18% and 12% to 5% from Sep 22, 2025. When you made purchases of packaged foods this week (Oct 6 to Oct 13) online or offline, did you pay less?” Out of 19,696 consumers who responded to the question 22% stated that “full benefit of lower tax was passed”; 32% of respondents stated that “only partial benefit of lower tax was passed”; 28% of respondents stated that “no benefit of lower tax was passed” and 18% of respondents did not give a clear answer. To sum up, 22% of consumers surveyed confirmed receiving full benefit of GST rate reduction on packaged food products this week; Another 32% confirmed receiving partial benefit.

50% drop observed in consumers who confirmed getting full benefit of GST rate reduction on packaged food products in week 3 post GST 2.0; More report getting partial benefits instead

In week 3 post GST 2.0 implementation 50% drop has been observed in consumers who confirmed getting full benefit of GST rate reduction on packaged food products; More report getting partial benefits. As compared to week 2, when 58% had reported getting partial or full benefit, in week 3 the percentage dropped to 54 with those who reported full benefit dipping from 40% to 22% in week 3 and those reporting partial benefit rising from 18% to 32%.

27% of consumers surveyed confirmed receiving full benefit of GST rate reduction on medicines this week; Another 27% confirmed receiving partial benefit

In the case of medicines, 16% of consumers surveyed confirmed receiving full benefit of GST rate reduction on medicines in the second week and 44% confirmed to have received partial benefits. The survey next asked consumers, “GST rate on many medicines was reduced from 18% and 12% to 5% from Sep 22, 2025. When you made purchases of medicines this week (Oct 6- Oct 13) online and offline, did you pay less?” Out of 19,832 who responded to the question 27% indicated “full benefit of lower tax was passed”; 27% of respondents indicated “only partial benefit of lower tax was passed”; 35% of respondents indicated “no benefit of lower tax was passed” and 11% of respondents did not give a clear answer. To sum up, 27% of consumers surveyed confirmed receiving full benefit of GST rate reduction on medicines this week; Another 27% confirmed receiving partial benefit.

Percentage of consumers who confirmed getting full or partial benefit of GST rate reduction on medicines shows 10% drop in week 3; Continues to be the worst performing sector in passing GST 2.0 benefits

In week 3, the percentage of consumers who confirmed getting full or partial benefit of GST rate reduction on medicines showed 10% drop. As against 60% of consumers who claimed to have received partial or full benefit in week 2, in the week under study 54% of consumers claimed to have received partial or full benefits. As against 28% who indicated not having received any benefit, in week 3 it rose to 35%. The survey shows that medicines sector continues to be the worst performing in passing GST 2.0 benefits.

33% of consumers surveyed confirmed receiving full benefit of GST rate reduction on appliances, white goods and consumer electronics this week; Another 32% confirmed receiving partial benefit

In the case of appliances, white goods and consumer electronics, compared to the first week a 15% drop was observed in percentage of consumers who confirmed they got full or partial benefit of GST rate reduction, while there was 10% drop among those who got full benefit. The survey asked consumers, “GST rate on many appliances, white goods and consumer electronics was reduced from 28% to 18% from Sep 22, 2025. When you made purchases in these categories this week (Oct 6 – Oct 13) online or offline, did you pay less?” Out of 19,801 consumers 33% indicated that “full benefit of lower tax was passed”; 32% of respondents stated that “only partial benefit of lower tax was passed”; 14% of respondents stated that “no benefit of lower tax was passed” and 21% of respondents did not give a clear answer. To sum up, 33% of consumers surveyed confirmed receiving full benefit of GST rate reduction on appliances, white goods and consumer electronics this week; Another 32% confirmed receiving partial benefit.

2 in 3 consumers surveyed continue to confirm getting full or partial benefit of GST rate reduction on appliances and white goods in week 3 post GST 2.0

In week 3 post GST 2.0, 2 in 3 consumers surveyed continue to confirm getting full or partial benefit of GST rate reduction on appliances and white goods. The level of consumers benefitting from lowering GST in the case of appliances, white goods and consumer electronics, which had dipped in Week 2 from 67% in Week 1 to 57% again rose in Week 3 to 65%. Those who indicated to have got no benefit have shrunk from 33% in Week 1 to 20% in Week2 and further to 14% in Week 3. Of course, over 20% of consumers surveyed in Week 3 continue to be uncertain about the issue as they did not give a clear answer. As mentioned, some retailers are offering discounts or gifts in lieu.

52% of consumers surveyed confirmed receiving full benefit of GST rate reduction on vehicles this week; Another 24% confirmed receiving partial benefit

In the case of vehicles, 55% of consumers surveyed had confirmed receiving full benefit of GST rate reduction in the second week while another 21% confirmed receiving partial benefit. The survey asked consumers who bought vehicle in the Week 3, “GST rate on vehicles was reduced by 10% across most categories from Sep 22, 2025. When you booked or purchased a vehicle this week (Oct 6- Oct 13) did you get advantage of the lower tax rate?” Out of 19,715 who responded to the question 52% stated that “full benefit of lower tax was passed”; 24% of respondents stated that “only partial benefit of lower tax was passed”; 17% of respondents stated that “no benefit of lower tax was passed” and 7% of respondents did not give a clear answer. To sum up, 52% of consumers surveyed confirmed receiving full benefit of GST rate reduction on vehicles this week; Another 24% confirmed receiving partial benefit.

75% consumers surveyed continue to confirm getting full or partial benefit of GST rate reduction on vehicles in week 3 post GST2.0; Drop from week 1 performance observed in week 2 continues in week 3

In week 3 post GST 2.0 implementation, while 75% of consumers surveyed confirmed getting full or partial benefit of GST rate reduction on vehicles; there continues to be a drop when compared to week 1 performance when 100% of those surveyed had admitted having got partial or full benefits of the tax reform. The percentage of those who indicated not having received any tax benefits rose from 12% in Week 2 to 17% in Week 3.

In summary, while more consumers are getting the benefits of GST 2.0 reforms, in some sectors like processed foods and medicines much more action is required by the brands, their supply chain and the last mile retailers. The study in Week 3 shows that 22% consumers surveyed confirmed receiving full benefit of GST rate reduction on packaged food products this week; Another 32% confirmed receiving partial benefit. In week 3 post GST 2.0 implementation, 50% drop has been observed in consumers who confirmed getting full benefit of GST rate reduction on packaged food products while more reported getting partial benefits. As compared to week 2, when 58% had reported getting partial or full benefit, in week 3 the percentage dropped to 54 with those who reported full benefit dipping from 40% to 22% in week 3 and those reporting partial benefit rising from 18% to 32%. This is likely due to reduced enforcement.

In the medicines sector, 27% of consumers surveyed confirmed receiving full benefit of GST rate reduction this week; Another 27% confirmed receiving partial benefit. As against 60% of consumers who claimed to have received partial or full benefit in week 2, in the week under study 54% of consumers claimed to have received partial or full benefits. As against 28% who indicated not having received any benefit, in week 3 it rose to 35%. The survey shows that medicines sector continues to be the worst performing in passing GST 2.0 benefits.

33% consumers surveyed confirmed receiving full benefit of GST rate reduction on appliances, white goods and consumer electronics this week; Another 32% confirmed receiving partial benefit. The level of consumers benefitting from lowering GST in the case of appliances, white goods and consumer electronics, which had dipped in Week 2 from 67% in Week 1 to 57% again rose in Week 3 to 65%.

In the automobile sector, 52% consumers surveyed confirmed receiving full benefit of GST rate reduction this week; Another 24% confirmed receiving partial benefit. In week 3 post GST 2.0 implementation, while 75% of consumers surveyed confirmed getting full or partial benefit of GST rate reduction on vehicles; there continues to be a drop when compared to week 1 performance when 100% of those surveyed had admitted having got partial or full benefits of the tax reform. The percentage of those who indicated not having received any tax benefits rose from 12% in Week 2 to 17% in Week 3.

LocalCircles plans to share this report with authorities and hopes that action will be taken to get the industry and trade bodies in ensuring full benefits of GST 2.0 reform reach the consumers at the very earliest.