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GST news LIVE updates: With the rolling out of the Goods and Services tax reforms (GST reforms) on Monday, the first day of Navratri, reduced GST rates will be applicable on 375 items, covering a wide range of services – from automobiles to daily consumer items. The GST council, headed by finance minister Nirmala Sitharaman, had announced the reform of the Goods and Services Tax (GST) on September 4.…Read More
– Two-tier structure
Under the GST reforms, the new system introduces a two-tier structure. Until now, GST had been levied across four tax slabs – 5%, 12%, 18%, and 28% – and included a compensation cess on luxury and “sin” goods.
Starting September 22, most goods and services will be taxed at 5% or 18%, while ultra-luxury items or “sin” goods will face 40% tax. Tobacco and related products will remain in the 28% bracket, along with an additional cess.
– What gets cheaper?
Daily use items like snacks, coffee, ghee, paneer, butter, ketchup, jam, dry fruits and ice cream will see reduced GST rates. The GST on aspirational goods like TVs, air conditioners, and washing machines has also been reduced.
The taxes on medicines has also been brought down from 12% to 5%, with critical life-saving drugs for cancer, genetic and rare disease being exempted from the tax altogether. Almost 99% of the goods which earlier attracted 12% GST will now come under 5% tax slab.
– PM Modi’s ‘Bachat Utsav’
In his address to the nation on Sunday, Prime Minister Narendra Modi said that Indians will save ₹2.5 lakh crore with the GST rate revisions which come into effect today, in addition to the income tax reforms.
While terming it “Bachat Utsav”, PM Modi said that reduced GST rates would provide relief to the poor and and neo middle class.
“With these reforms the youth, farmers, women, shopkeepers, traders, entrepreneurs will all be able to benefit from this Bachat Utsav (savings festival),” PM Modi said, adding that people would be able to save more during the festive season.
The Prime Minister further highlighted the positive effect that the new GST regime would have on medium and small enterprises. Modi said that it would enhance competitiveness and boost the economy.
The GST reduction also applies to statues, statuettes, original engravings, prints, lithographs, ornamental articles, stone art ware, and stone inlay work. The GST on these will reduce from 12% to 5%. This will provide support to artisans, craftsmen, and sculptors, with many of them being part of India’s cottage industries, according to a PIB factsheet.
The GST 2.0 reforms has led to a reduction in GST rates for the hospitality and tourism sectors. A lower GST rate of 5%, down from the earlier 12%, will be applicable on hotels, making stays more affordable for middle-class and budget travellers, a PIB factsheet said. The lower rates will also attrack foreign tourists and boost tourism.
The GST reduction on buses, from 28% to 18%, will make them accessible for fleet operators, schools, corporates, tour providers, and state transport undertaking, according to PIB. This will help bring down ticket fares in semi-urban and rural routes, and encourages a shift from private vehicles to shared/public transport.
With the roll out of the GST 2.0 reforms, Prime Minister Narendra Modi met shopkeepers and traders in Arunachal Pradesh on Monday. PM Modi, who is on a day-long visit to the state, also handed them placards which said ‘Garv se Kaho Yeh Swadeshi Hai’. PM Modi had, during an address on the Next Gen GST reforms on Sunday, reiterated his push for Swadeshi products.
Union Minister Bhupender Yadav said that the country was headed towards next-gen GST with the commencement of Shardiya Navratri. “Under this, GST reforms have been brought for relaxation to industries, boost to trade, simplification of tax rates and impetus to the country’s economy,” Yadav told ANI. He highlighted the two-tier structure, adding that farm equipment was now cheaper, and prices of automobiles and electronics were lower.
“This GST relief is like a ‘Bachat Utsav’ in this festive season, where a common man from poor family, middle class family, neo-middle class family will contribute towards the economic growth of the country…” Yadav added, according to ANI.
Odisha BJP President Manmohan Samal on Monday hailed the implementation of the new GST reforms as “revolutionary”. Samal said the decision would bring relief in agriculture and health sectors, ANI reported. “This will benefit the country and common man will have more income,” Samal said.
Goa chief minister Pramod Sawant said the next-generation GST reforms would strengthen India’s journey towards an Atmanirbhar Bharat 2.0. In a post on X, CM Sawant said Prime Minister Narendra Modi had urged states to strengthen the ecosystem for micro, small and medium enterprises (MSMEs), build the infrastructure to attract investments, and enhance competitiveness in manufacturing.
“Goa is fully committed to this mission — modernising infrastructure, simplifying processes and empowering our entrepreneurs so that Swadeshi products shine proudly in India and across the globe,” Sawant added.
CTI chairman Brijesh Goyal said that the business community welcomes the “historic” GST reform. “This reform will prove beneficial for everyone—be it homemakers, students, businessmen, CAs, or others,” Goyal told PTI.
Daily-use essentials, farm equipment, healthcare products and education supplies have largely been moved to the 5% slab under the new GST regime, providing relief to households and farmers. Here are the products will now fall under the 5% slab.
The GST reforms will strengthen the economy and provide relief from inflation, Delhi Chief Minister Rekha Gupta said Monday. The Delhi CM will participate in the ‘GST Savings Festival’ at Totaram Market in Tri Nagar on Monday afternoon, PTI reported. Gupta said the decision to simplify the tax system has ushered in Diwali early for Delhi’s traders.
As the GST reforms roll out, this is he biggest revamp of an indirect tax system in India since 2017, when the Goods and Services Tax was introduced. The new GST regime simplifies the system of four slabs by making it a two-tier structure.
Prime Minister Narendra Modi, in his address to the nation on Sunday, pushed for Swadeshi products, while saying that new GST reforms would boost growth, ease business operations, and attract investors.
375 items will see slashed GST rates from today. This includes daily use essential items like ghee, paneer, butter, snacks, ketchup, jam, dry fruits, coffee, and ice cream. Aspirational consumer goods, including TVs, air conditioners, and washing machines will also be cheaper from today.
GST news LIVE updates: Prices of about 375 items ranging from kitchen staples to electronics, medicines equipment as well as automobiles get cheaper from today, September 22, as the reduced GST rates take effect.
In a big bonanza to the consumers, the GST Council, comprising Centre and states, announced on September 4 reducing GST on most goods and services at 5 per cent or 18 per cent discontinuing the earlier slabs of 5 per cent, 12 per cent, 18 per cent, and 28 per cent.
Under the new GST reforms, ultra-luxury items or “sin” goods will face 40 per cent tax. Tobacco and related products will remain in the 28 per cent bracket, along with an additional cess.
The government decided roll out the new GST rates from September 22 – the first day of the Navaratri festival.
Mass consumption items like ghee, paneer, butter, ‘namkeen’, ketchup, jam, dry fruits, coffee and ice creams, and aspirational goods like TV, AC, washing machines will now be cheaper.
