Latest Updates on GST Revamp

Car market leader Maruti Suzuki India is accelerating its capital expenditure plans amid a sharp increase in passenger vehicle demand following the GST 2.0 rationalisation, MD and CEO Hisashi Takeuchi said on Tuesday, as the tax reform completes one year. The company's passenger vehicle sales grew about 36 per cent year-on-year during April-August 2026, while sales in the entry segment surged over 96 per cent during the period, Takeuchi said. "A year ago, the landmark GST reform gave fresh impetus to India's growth journey. At Maruti Suzuki, passenger vehicle sales grew about 36 pc year-on-year during Apr-Aug'26. We are particularly encouraged by the entry segment's growth of over 96 per cent, where improved affordability has brought mobility closer to many more people," Takeuchi stated in a post on X. He said this demonstrates the power of the Indian consumer and the importance of affordability. "When domestic industry catches scale and competitiveness, more global business ...

Today's pieces examine Tata Sons' governance, India's compliance maze, the next phase of GST reforms, West Bengal's investment record and a book on entrepreneurial failure

Further rationalisation in goods and services tax (GST) on domestic hotels and restaurants could help fuel tourism growth in India, even as the country's travel market continues to grow despite global uncertainties, according to SOTC Travel Managing Director and CEO Vishal Suri. The GST Council had last year reduced GST on hotel rooms with tariffs of up to Rs 7,500 per night to 5 per cent from 12 per cent, without input tax credit, to make accommodation more affordable and support tourism. The new rates came into effect from September 22 last year. Suri said the government's decision to reduce the tax collected at source (TCS) on overseas tour packages to a uniform 2 per cent was a positive step for the industry. "The government has already reduced TCS on overseas tour packages to 2 per cent (uniform rate) and can further consider GST rationalisation on domestic hotels & restaurants," Suri told PTI in an interview. He said tourism has the potential to emerge as a major contributor

Economist M Govinda Rao warns rising geopolitical tensions could expose India's fiscal vulnerabilities, calling for reforms in GST, deficits, and public spending

Domestic passenger vehicle wholesales rose sharply in January, supported by GST tailwinds and improved demand, though automakers flagged production constraints and rising cost pressures

Gross GST collections rose 6.2 per cent to over Rs 1.93 lakh crore in January, mainly on higher revenues from imports, sources said on Sunday. Total refunds declined 3.1 per cent to Rs 22,665 crore. Net Goods and Services Tax (GST) revenues, however, grew 7.6 per cent to about Rs 1.71 lakh crore in January. Cess collection (from tobacco products) in January stood at Rs 5,768 crore. This compares to Rs 13,009 crore in collections in January last year when a cess was levied on luxury, sin and demerit goods such as cars, and tobacco products. Effective September 22, 2025, GST rates on about 375 items were slashed, making goods cheaper. Also, a compensation cess is levied only on tobacco and related products, as opposed to luxury, sin and demerit goods earlier. The lowering of GST rates has impacted revenue collections. Gross tax collections from domestic transactions grew 4.8 per cent to Rs 1.41 lakh crore, while import revenues were up 10.1 per cent to Rs 52,253 crore in January.

Any future public-sector bank consolidation must carefully weigh the pros and cons, including whether it will deliver meaningful synergies, says Nagaraju

Overall consumer trend still is towards buying SUVs and it is too early to say if the rise in demand for small car witnessed by automobile manufacturers in GST 2.0 era will be sustained, according to tyre maker CEAT Ltd MD and CEO Arnab Banerjee. The company is maintaining its guidance for a double digit growth for the ongoing fiscal although GST 2.0 has provided an impetus, and it is looking to tap rural markets, specially for farm and two-wheeler tyres, Banerjee told PTI. "It is too early to say... Overall consumer trend still is towards buying SUVs," Banerjee said when asked about the continuation of the impact of GST 2.0 in the passenger cars segment, specially rise in small car demand. In the last few years, SUV sales have driven passenger cars segment and small cars sales have declined due to affordability issues. In 2025, SUVs continued strong traction going up to 55.8 per cent of total PVs sold in India from 53.8 per cent in 2024, even as small cars showed signs of recovery

Ceat's profit, however, slumped 16.2 per cent sequentially due to costs related to the implementation of new labour codes and an exceptional-item profit in Q2FY26

ICICI Securities identified four key growth levers for HUL. First, demand for large-pack units in personal care categories has shown strong responsiveness to lower prices following GST cuts.

As the Centre scraps the GST compensation cess, here is how India's tobacco tax structure has evolved over the past decade

The government said that tobacco products will continue to attract GST but will also be subject to additional excise duty on top of that tax from February 1

Prices of cooling appliances such as room air conditioners and refrigerators may go up 5-10 per cent from January 1, 2026, as the new revised star rating from the Bureau of Energy Efficiency (BEE) comes into force. This hike, which will be applicable from January 1, 2026, will almost offset the price advantage which the consumers have got from the GST reforms in September this year on room air-conditioners (RAC), where duty was slashed 10 per cent. Besides the fall of the Indian rupee against the US dollar and global increase of copper prices is also putting pressure on manufacturers' margins. Despite this, leading manufacturers such as Voltas, Daikin, Blue Star, and Godrej Appliances are unfazed and expect this to help to keep the carbon footprints lower. The new 5-star AC under the new revised BEE norms is 10 per cent more energy efficient; however, it will also increase the prices by around 10 per cent, said Blue Star Managing Director B Thiagarajan. "New 5-star is a new produc

India's agriculture sector closed 2025 with a projection of record foodgrain output surpassing last year's 357.73 million tonnes (MT) despite US tariffs disrupting farm exports, while landmark GST reforms delivered input cost relief, and stakeholders await passage of key seed and pesticide bills in 2026 to tackle fake inputs. The year showed both resilience and fragility -- GST rate reductions delivered noticeable cost savings, while American tariff wall compelled market diversification, officials said. "We are hopeful of achieving record foodgrain production this year 2025-26 (July-June). Kharif output remained positive and rabi sowing is progressing well," Agriculture Secretary Devesh Chaturvedi told PTI. Above-normal southwest monsoons boosted kharif sowing, with the agriculture ministry's first advance estimate projected kharif foodgrain output at a record 173.33 MT for 2025-26, up from 169.4 MT in 2024-25. Rice production is predicted to exceed 124.5 MT, with maize at 28.3 MT.

India overhauled its tax regime in 2025 with sharp cuts in Goods and Services Tax (GST) rates and a higher income tax exemption limit, with the spotlight now turning to customs duty rationalisation and procedural simplification in the coming Budget. Next year will see the new simplified Income Tax Act, 2025, to come into effect from April 1, replacing the over six-decade-old current Income Tax Act, 1961. Also, two new laws -- one to levy additional excise duty on cigarettes and another to levy cess on pan masala over and above GST rates -- will be implemented on a date decided by the government. The tax reforms rolled out by the government in 2025 were aimed at stimulating demand amid a challenging global economic environment. With tariff uncertainties casting a shadow over economic decision-making, India's tax reform measures focused on boosting domestic demand to drive consumption and support growth. A key highlight was the reduction of GST rates on about 375 goods and services .

Sales volumes rose 7.2 per cent year-on-year in October 2025 to 19,555 units, before moderating by 1.4 per cent in November to 10,396 units

Life insurers have formed committee to discuss the capping of distributor commission

The Bill was tabled earlier amid the Opposition's protest demanding a discussion on the Special Intensive Revision (SIR) of electoral rolls

Govt hikes excise on tobacco, levies pan masala cess amid tepid GST growth, raising concerns over divisible pool

GST 2.0, which levies a flat 40 per cent tax on luxury vehicles, has spurred renewed enthusiasm. Prices have fallen by 6-8 per cent