When you visit the mall, you not only shop but also enjoy dining at restaurants and taking your children to fun zones. Those fond of movies indulge in watching films at multiplexes. These activities, however, come at a price, often with added GST. But now on your next mall trip, you'll notice a lighter expense as the government has implemented changes in GST rates effective from September 22, 2025. Let's explore the impact of these tax cuts on our favorite activities.
Activity One: Clothing and Footwear Shopping
When you visit the mall, you'll notice a significant benefit in purchasing clothing and footwear under the new GST reforms. Items priced at ₹2,500 or less, including sarees, shirts, ready-made, and unstitched clothes, will now have a GST rate of 5% instead of 12%.
This means that if you buy a saree or shirt costing ₹2,000, you'd save around ₹140. Previously taxed at 12%, it would cost ₹240 in GST, now reduced to just ₹100. Similarly, footwear priced under ₹2,500 will see the tax rate drop from 12% to 5%.
Source: aajtak
Activity Two: Grocery Savings
Besides clothing and footwear, retail markets within malls like Smart Bazaar offer substantial discounts on groceries. With the GST rate cut, expenses on purchasing daily essentials will decrease. Approximately 99% of everyday items now fall into either the 5% or zero GST category, promoting significant savings.
For instance, packed flour, pulses, and rice will maintain a 5% GST, but oil, shampoo, and soap reducing from 18% allow for a ₹13 saving on every ₹100. Items for children, like pasta, corn flakes, and biscuits, drop from 12-18% to 5%, resulting in lower costs. Breads and bread-based products now have zero GST.
Activity Three: Reduced Tax on Cinema Tickets
Under the new GST rates, cinema ticket taxes are reduced. Now tickets priced up to ₹100 will have a 5% GST instead of 12%. However, in multiplexes within malls, where ticket prices typically exceed this range, the benefit might be limited, yet smaller cinemas in tier 2 cities will enjoy the relief.
Source: aajtak
Activity Four: Big Salon Visits Get Cheaper
Prestigious salons like Javed Habib, Looks, and Geetanjali in malls offer now reduced GST rates on services. From September 22, 2025, the tax rate for salons, spas, and gym services drops from 18% (with ITC) to 5% (without ITC). Consequently, services previously costing ₹2000 with a ₹360 GST will now incur only ₹100 in GST.
Activity Five: Enjoying the Food Court
Tax reductions on ingredients like butter, cheese, and pizza bread mean the price of dishes in mall food courts will likely decrease. Although direct GST cuts on restaurant services or fast-food items have not been declared, announcements by brands like Amul and Mother Dairy signal potential price drops in final bills for items such as coffee or pizza.
Other areas also show the GST Cut’s impact, such as reduced taxes for electronics like ACs, TVs, and refrigerators, now lowered from 28% to 18%. Toys and educational items show 5% or zero rates, and artistic products have seen tax exemptions.
