Page 14 - Latest Updates on GST Revamp

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

From automobiles to agriculture, EY analysis on impact of GST rate change

Relief from long-pending disputes around GST rates on auto components with a single GST slab of 18%

GST reforms expected to lower inflation, create room for rate cut

A rate cut will also depend on how the central bank assesses growth, post the 50 per cent tariff imposed by the US, with the additional 25 per cent came into effect from late August

Markets log best week in 2 months as GST revamp boosts growth hopes

Benchmark indices end the week higher, posting their best gains in over two months, with optimism from GST reforms on everyday goods

If OEMs pass on benefits, freight costs may go down: Transporters

According to Singal and several other truck operators, the road logistics sector is so competitive that passing on benefits is really quick

Moderate impact of GST cuts on fiscal deficit; inflation may lower 50-90bps

Besides, a cut in the tax rate on nearly one-fourth of the essential and household items contained in inflation basket may lead to a moderation of 50-90 bps in retail inflation over next 12 months

Maruti to Tata Motors: Auto companies start passing on GST cut to buyers

Maruti's Alto could see a price drop by ₹40,000-50,000, while the entry-level Wagon R may see reductions between ₹60,000 and ₹67,000

GST 2.0: ITC, VST Industries shares fall as Govt eyes extra tobacco tax

Tobacco stocks like ITC, VST and Sinnar Bidi fell up to 5 per cent today after govt signaled an extra GST cess on cigarettes and bidis, raising margin risks. Analysts suggest stock strategy ahead

GST 2.0: Food-delivery giants face new ₹500 cr tax bill, margin crunch

Platforms must pay 18% GST on behalf of delivery workers, a move that could squeeze margins and raise consumer costs as growth slows