Page 13 - Latest Updates on GST Revamp

Cabinet Secretariat, ministries to meet Monday on smooth GST rollout

According to another official, Finance Ministry is eager to re-examine certain sectoral issues if directed by the Prime Minister's Office

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

Best of BS Opinion: India's new-age economy gets a data reset

Today's Opinion pieces explore a new data framework, the Bima Sugam initiative, the real impact of the GST rate cuts, and what the startup ecosystem really needs

Bima Sugam can deepen insurance penetration, but must be fair, transparent

Bima Sugam aims to transform insurance with a digital one-stop platform for buying, managing, and claiming policies, targeting "Insurance for All by 2047

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 council's tax simplification move to make taxation 'transparent': IOB

The GST council's decision to simplify the tax structure would make taxation more 'transparent' and boost consumption over 8-10 per cent in rural markets, a top official of public sector Indian Overseas Bank said on Sunday. The Bank's Managing Director and CEO Ajay Kumar Srivastava said there would be an increased demand across retail, micro, small and medium enterprises and agricultural segments as incomes rise and investments pick up. "The GST Council's decision to simplify the tax structure from the current four slabs -- 5,12,18 and 28 per cent, to a two-rate structure 5 and 18 per cent will make taxation more transparent and easier to follow," Srivastava said in a press release. "We expect these measures will drive an estimated growth in consumption over 8-10 per cent in the next two quarters in rural markets, particularly benefitting farmers through reduced costs on agricultural products where GST has been brought down from 12 per cent to 5 per cent," he said. He underlined th

CBIC to address industry complaints of non-reduction in prices: Chairman

The Central Board of Indirect Taxes and Customs (CBIC) will take up industry bodies' complaints relating to non-reduction in prices of goods after the reduced GST rates are implemented from September 22, its chief Sanjay Kumar Agarwal has said. 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. Talking to PTI after the Council decision, the CBIC chief said the industry has, in the past, also reduced prices of goods as and when the GST Council has taken a decision to reduce taxes. Also, there are competitive forces at play in the market, which will bring about price reduction in the hand

PM Modi's nudge ushered in biggest GST reform in 8 years: Sitharaman

'Ek baar aap GST dekh lo!' - Prime Minister Narendra Modi's gentle nudge to Finance Minister Nirmala Sitharaman in December last year sparked the beginning of a mammoth exercise to overhaul the tangled goods and services tax regime. And the final outcome is a significantly simplified system with lower tax rates and easier compliance for businesses. Sitharaman, who, along with her team, began work to identify anomalies in the present four-tier structure and compliance issues faced by businesses, was once again reminded by the Prime Minister when she was preparing the Budget for the 2025-26 fiscal year. 'Aap GST ke upar kar rahi ho na kaam?' Modi had inquired. Her discussion with the Prime Minister led Sitharaman to begin work on reviewing everything in GST - not just rates and tax slabs but how to make the regime more friendly for businesses, particularly small and medium businesses. In an interview with PTI, Sitharaman recalled the parallel works that happened - from overhauling the

Health experts alarmed by GST cut on beedis, demand uniform taxation

Health experts have raised serious concerns over the government's decision to reduce the Goods and Services Tax (GST) on beedis from 28 per cent to 18 per cent, while other tobacco products remain in the highest 40 per cent slab. They warned that cheaper beedis could increase their use, particularly among poor and vulnerable communities, worsening India's tobacco-related health burden. Beedis, the most commonly smoked tobacco product in India, are used by over 70 million adults, according to the Global Adult Tobacco Survey (GATS) India 2016-17. Warning of public health risks, renowned oncologist and recipient of the Judy Wilenfield Award for Global Tobacco Control by WHO Partners, Dr Vishal Rao, said, "Beedis, widely consumed by vulnerable populations, are very harmful. This tax disparity risks making beedis more affordable, potentially increasing their use, leading to cancers and other diseases." Emphasising the broader policy risks, Dr Rao said this rate reduction would "subsidis

GST cut to ensure Yezdi, Jawa bikes shine like nobody else: Classic Legends

The GST reforms will ensure that iconic motorcycle brands Yezdi and Jawa "shine like nobody else" in their comeback trail after fading away from the market in the mid-90s due to a policy change, according to co-founders of Classic Legends, which owns the two marques. The bikes of the two brands will cost less than Rs 2 lakh once the new rate of the revised goods and services tax (GST) structure of 18 per cent, down from 28 per cent on two-wheelers up to 350 cc, kicks in as the company will pass on the full benefits to customers, Classic Legends MD & Co-Founder Anupam Thareja and Co-Founder Boman Irani told PTI in a joint interview. At present, different models of the two brands are priced between Rs 1.72 lakh and Rs 2.35 lakh. On the other hand, the increase to a 40 per cent special rate on motorcycles above 350 cc from 31 per cent, including cess, will hurt the company's other motorcycle brand BSA but they appreciated the government's move to "affect positively the pockets of the

GST rate cut for dairy, agricultural inputs to benefit 10 crore farmers

The GST rate cuts across dairy products, agricultural inputs, and food processing items will directly benefit over 10 crore dairy farmers and strengthen the cooperative sector, Ministry of Cooperation said on Saturday. The GST restructuring addresses the inverted duty structure in fertiliser manufacturing and is expected to prevent price rise for farmers while ensuring timely availability of inputs during sowing seasons, the ministry said in a statement. For dairy farmers, the exemption on milk and paneer, combined with reduced rates on processing equipment, is likely to improve margins for both individual farmers and dairy cooperatives. Major dairy brands including Amul have welcomed the announcement. The reduction in tractor and component prices will particularly benefit small farmers engaged in mixed farming and animal husbandry, as these tractors are commonly used for fodder cultivation and farm produce transportation. The moves are designed to stimulate demand in semi-urban an

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

This round of tax reforms can be termed 'MGGA - Making GST Great Again'

To ensure the 56th GST Council is remembered as the most transformative since 2017, the proposed changes must be implemented in spirit, and what must happen next for promises to become policy

Sitharaman thanks state FMs for support in implementing GST overhaul

Finance Minister Nirmala Sitharaman hailed the GST Council's unanimous decision to cut tax rates, thanking state finance ministers for prioritising public relief over revenue concerns

GST rate cuts to ease tax burden, boost economy: Ashwini Vaishnaw

The GST rate cuts will not only benefit the common people but also boost India's economy, Union minister Ashwini Vaishnaw asserted on Saturday and hit out at the Congress, alleging "heavy burden" of tax during its term at the Centre. The GST Council's decision to bring all products, except those under the sin and luxury goods category, under 5 per cent and 18 per cent slabs, while reducing it to zero on a host of essential items, will come into effect from September 22, the first day of Navratri. Addressing a press conference at the BJP headquarters here, Vaishnaw said, "The coming 22nd, the first day of Navratri, will bring a new happiness for all of us, for all middle-class families and for 140 crore citizens of this country." The GST reforms will also serve as a catalyst in the economic development of the country, he said "This reform has brought a big relief to the lives of 140 crore people of the country. Before 2014 (during Congress rule), there was a huge burden on common

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

Mahindra passes on GST cuts; Tata, Renault follow with price reductions

Automakers slash prices up to ₹1.56 lakh as GST 2.0 rationalises tax slabs, with Mahindra leading the move ahead of the September 22 deadline

Industry body hails agri input GST cuts, seeks similar relief for seeds

The Federation of Seed Industry of India (FSII) on Saturday welcomed the GST Council's decision to slash rates on key agricultural inputs while urging similar relief for the seed sector. The move to cut GST on fertiliser raw materials, bio-pesticides, micronutrients and farm machinery will substantially lower input costs and create economic momentum, the industry body said. "This is a transformative step for Indian agriculture. The government has directly empowered farmers and strengthened the rural economy," said Ajai Rana, FSII Chairman and CEO of Savannah Seeds. However, FSII flagged that similar reforms are overdue for the seed sector. Currently, GST exemption on seeds denies the industry input tax credit (ITC) benefits on most inputs and services. Items like packaging, logistics, warehousing and chemical treatments attract standard GST rates, creating a higher tax burden on seeds versus other agri inputs with concessional rates. The body urged the government to either fully .

Centre may introduce Bill in winter session to replace tobacco GST cess

New levy could follow full repayment of GST compensation loans, keeping overall tax incidence on tobacco products high