Page 3 - Gst Rate Cuts

GST cut relief: Two-wheeler prices may decline by as much as ₹24,500

The GST Council recently cut tax rates on sub-350cc two-wheelers and three-wheelers from 28 per cent to 18 per cent, effective September 22, 2025

Simplifying GST rates is welcome, but real competitiveness needs more

Rate rationalisation is welcome, but more work is needed to eliminate cascading taxes

GST rate cut to lower cement prices by ₹30 to 35 per bag, reports Ind-Ra

The GST rationalisation will bring down the prices of cement by Rs 30-35 per 50 kg bag and lower the cost of construction, a report from India Ratings and Research (Ind-Ra) said. Last week, the GST Council decided to overhaul the current GST regime into a two-slab structure -- 5 per cent and 18 per cent. From September 22, cement will be taxed at 18 per cent, instead of 28 per cent now. The report said the revamp is a "structural positive" for the cement sector and could support demand in the affordable segment, which has been tepid in recent times. Ind-Ra believes companies will likely largely pass on this benefit by reducing selling prices which will help lower construction costs for infrastructure and housing projects. "With the rate cut likely to be passed on due to high competition, cement prices for consumers would soften while net realisations for cement companies may remain range bound," it said. However, Ind-Ra maintains its cement demand growth forecast at 5-7 percent ..

Govt clears MRP fixes for unsold FMCG inventory after GST rate change

Allows price revisions until December 31

GST reforms should be the beginning of more reforms in all laws

Such changes have received sufficient media coverage, and so, I will focus more on certain other aspects

GST reforms: Hyundai Motor India set to cut prices by up to ₹2.4 lakh

Hyundai to cut prices of Verna, Creta, Venue, i20 and Tucson by up to ₹2.40 lakh from Sept 22 after GST rate cut, making cars more affordable this festive season

Defiance won't beget India respect, export-focused manufacturing base will

One of the best ways to judge the impact of any policy is to check its effect on stock prices of companies, supposedly benefiting

Looking at India for small e-cars as GST rate cuts boost market: VW CEO

German automotive group Volkswagen is looking at India as a potential market for its affordable small electric cars and is working with partners on how to best introduce them in the market, its CEO Oliver Blume said on Sunday. The group, which presented an all-electric small car family in its entirety for the first time at IAA Mobility, feels that the reduction of goods and services tax (GST) on automobiles in India makes the Indian automotive market, already the third largest, more attractive, Blume told PTI here on the sidelines of the event. Under the electric small car family, the VW Group showcased 'ID. CROSS Concept' SUV from Volkswagen brand, Skoda Epiq SUV along with sister models Volkswagen ID. Polo and CUPRA Raval. Blume said the group has been working on the entry level electric mobility across its various brands to offer affordable sustainable mobility under its project called electric urban car family. When asked how the group is looking at India as a market for the ..

No GST cut for detergents, cosmetics surprises FMCG firms: Analysts

Keeping detergents and cosmetics under 18 per cent tax rate with zero savings on these daily-use items for households under the government's sweeping GST restructuring move is surprising, say industry players and analysts. The all-powerful GST Council last week decided to reduce taxes on most of the common-use goods as part of the government's measure to boost consumer spending. The new structure of goods and services tax (GST), which comes into effect on September 22, will have two slabs of 5 per cent and 18 per cent instead of the current four slabs of 5, 12, 18 and 28 per cent. Fast-moving consumer goods (FMCG) products such as hair oil, soap, face powders, shampoos, toothbrushes, and toothpaste have come under the lower slab of 5 per cent from 18 per cent. However along with detergents and cosmetics, duty on several items such as hair dye and household insecticides has not been reduced. FMCG companies say they are ready to pass on the benefits of the duty cuts to consumers, ev

GST cut on biogas devices to drive private investment, project growth

The reduction of Goods and Services Tax (GST) on biogas plants and devices will boost private investment in the sector, the Indian Biogas Association said on Sunday. The GST on biogas plants and devices has been cut to 5 per cent from 12 per cent, effective September 22. The GST Council, comprising the Centre and states, last week decided to cut tax rates on 375 items and reduce the number of slabs to just 2 from 4 currently. From September 22, a 5 per cent GST will be levied for most common-use goods and 18 per cent on everything else. The GST Council took a unanimous decision to do away with the 12 and 28 per cent slabs, the biggest rejig in 8 years since Goods and Services Tax (GST) was rolled out on July 1, 2017. Biogas plants and devices should become cheaper and more accessible and more financially attractive for investment, said the Indian Biogas Association (IBA) in a statement. A reduction of 7 per cent (from 12 per cent to 5 per cent) in the applicable GST rate for the C

GST reforms to make life easier for both businesses, consumers: Sitharaman

Finance Minister Nirmala Sitharaman said GST reforms include faster refunds, easier registrations and lower tax rates on nearly 400 products, benefiting 140 crore people

KPCC chief admits error over GST 'Bidis and Bihar' social media post

The KPCC president, Sunny Joseph, on Saturday admitted that there was a "mistake" and "lack of caution" while posting the "bidis and Bihar" jibe on the social media handle of the party's state unit, a day after it was deleted following a political backlash. Joseph said the 'X' post was deleted and an apology was tendered by the social media team as directed by the state leadership. Kerala state unit of the Congress in a recent post on X, allegedly drew parallels between Bihar and Bidi (a tobacco product) in the wake of the recent GST reforms, and triggered sharp reactions from the BJP. The now deleted post said, "Bidis and Bihar start with B. Cannot be considered sin anymore". "The post has been deleted. The responsible persons - admin of the social media handle and the person who operates it, withdrew it and tendered an apology. The Congress does not endorse that," Sunny Joseph told a TV channel. While replying to a question, he also said there was a mistake and a lack of caution

Will the GST rate cut bring back foreign investors to Indian stock market?

The primary reason for the underperformance of the Indian market in the past year, according to analysts, is weak domestic growth

Celebrations commence with GST reform announcements, marking economic shift

This courageous move signals the emergence of a stronger economy, clearly indicating that India is firmlyset on a path of progress and growth

GST reforms to boost competitiveness of exporters across sectors

The removal of the value threshold for GST refunds will significantly benefit small and e-commerce exporters by making even low-value shipments eligible for refunds

Datanomics: Fast-moving goods and services key to meeting Modi's objectives

Looking from a different perspective of durability of the products, it is non-durable or fast moving products which would have higher impact on the demand

GST rate rejig above expectation, stocks price in most positives: Analysts

The breadth and depth of the new rate cuts, analysts at Bernstein said, especially in the fast-moving consumer goods (FMCG) categories saw rate reductions well beyond what they thought was possible

GST rate rejig may ease inflation by up to 75 bps in FY26: SBI Research

The GST rate rejig, which will bring down tax rates on essential household items and services, may help moderate retail inflation by 65-75 basis points in the next fiscal, SBI Research Report said on Thursday. The 56th meeting of the GST Council on Wednesday rationalised the current 4-tiered tax rate structure into a citizen-friendly 'Simple Tax' - a two-rate structure with a standard and merit rate of 18 per cent and 5 per cent, respectively. A special de-merit rate of 40 per cent has been set for a select few goods and services. The new tax rates will be effective from September 22, except for tobacco and related products, for which a date will be announced later. Of the 453 goods where GST rate has changed, 413 goods saw a decrease in rates, while only 40 goods witnessed an increase in rates. Almost 295 goods now have new GST rate of 5 per cent/NIL from earlier 12 per cent, the report said. "Since the GST rate of essential items (around 295 items) has declined from 12 per cent t

GST rate cuts to boost demand in India's ₹19 trillion dairy sector: Govt

The government on Thursday said the decision to ensure that most dairy products are now either exempt from tax or attract only a 5 per cent rate will boost demand in the Rs 19 lakh crore industry. In an official statement, the Ministry of Fisheries, Animal Husbandry & Dairying said the 56th GST Council, in its meeting held on Wednesday, approved sweeping tax rationalisations on milk and milk products. "These reforms mark one of the most comprehensive overhauls of GST rates in the sector, ensuring that most dairy products are now either exempt from tax or attract only a 5 per cent rate," it added. Under the revised structure, effective from September 22, 2025, the GST rate on ultra-high temperature (UHT) milk is reduced to nil from 5 per cent. The GST on paneer / chhena (Pre-packaged and labelled) has been reduced from 5 per cent to nil. Butter, ghee, dairy spreads, cheese, condensed milk, milk-based beverages will attract 5 per cent GST from 12 per cent. The GST on ice cream wil

GST rate for jewellery unchanged at 3 pc, but industry sees indirect gains

Even though the GST for gems and jewellery remained unchanged at 3 per cent, jewellers on Thursday welcomed the government's decision to reduce GST rates in other sectors, saying it would indirectly benefit the industry and boost demand. "The current GST reforms (GST 2.0) offer no direct and immediate relief to gems and jewellery exporters. Importantly, the gems and jewellery sector was excluded from the latest reforms. The reforms do not offset the adverse impact of the US tariffs, since input costs and compliance burdens remain unchanged," All India Gem and Jewellery Domestic Council (GJC) Chairman Rajesh Rokde told PTI. However, he said, by focusing on stimulating consumption, the GST changes will support the gems and jewellery sector indirectly over the longer term. "The new rates, effective from September 22, are expected to boost consumption, with the overall fiscal impact of the overhaul estimated at around Rs 50,000 crore," Rokde added. The GST Council, in its meeting held