Page 20 - Latest Updates on GST Revamp

GST 2.0 should pave way towards single nationwide tax rate: Report

The long-term success of Goods and Services Tax (GST) lies in moving towards a single nationwide tax rate, and that GST 2.0 must act as the stepping stone by keeping to just two slabs 5 per cent and 18 per cent while capping the peak rate firmly at 18 per cent, not 40 per cent, a report said. "Creating a 40 per cent slab, even for a narrow set of sin or luxury goods, will set a precedent for creeping expansion. Over time, more items will be drawn into this category, undermining the very purpose of simplification," Think Change Forum, a think tank, said in a report on Monday. The report titled 'GST 2.0: Two Slabs Today, One Rate Tomorrow', strongly recommended pegging the peak indirect tax rate, including cesses, to 18 per cent. This will in one stroke remove anomalies such as inverted duty structures, cut down grey and illegal markets, reduce litigation and compliance burdens, and restore credibility to the GST system, it said. It is noted that the high-powered GST Council, chair

Lower GST on 2Ws will boost affordability, aid buyers: Hero MotoCorp chief

Lowering of GST on two-wheelers will serve as a crucial enabler, offering much-needed relief to first-time buyers, especially in rural and semi-urban areas, where it is the backbone of personal mobility, Hero MotoCorp Pawan Munjal said on Monday. Ahead of the meeting of the GST Council this week, Munjal said the two-wheeler industry is not only a key driver of mobility but also a vital pillar of the national economy, contributing substantially to government revenues and generating employment across its value chain. Welcoming the government's decision for GST reforms and a possible cut in GST rates on two-wheelers, in a statement, he said, "This progressive step will serve as a crucial enabler, offering much-needed relief to first-time buyers, particularly in rural and semi-urban areas, where two-wheelers remain the backbone of personal mobility. It will significantly enhance accessibility and affordability for millions of Indians." He further said the two-wheeler industry is not onl

Cut GST on automotive tyres, don't treat them like luxury goods: ATMA

Automotive Tyre Manufacturers Association on Monday sought a reduction of GST rates on tyres for automobiles to 5 per cent from the current 28 per cent, while asking the government not to treat it on par with luxury goods, citing its cost impact on key sectors such as transportation, agriculture, mining, and construction. At present, all major categories of automotive tyres attract GST at 28 per cent, the highest tax slab, whereas tractor tyres and aircraft tyres are taxed at 18 per cent and 5 per cent respectively, Automotive Tyre Manufacturers Association (ATMA) said in a statement. In sectors such as transportation, agriculture, mining, and construction, where tyres form a significant component of operating expenditure, a lower GST rate of 5 per cent would provide meaningful relief to small traders, farmers and enterprises that rely on affordable transportation. The tyre makers' body further said lowering of GST on automotive tyres would directly reduce vehicle operating costs an

Dealerships face inventory glut in August as car buyers await GST cuts

>>ICE vehicle sales hit, EV market hopes held up >>Vahan data shows 3% drop in August auto sales

E-shoppers delay buying ahead of GST changes, festive sales likely to rise

The planned GST changes have prompted some e-shoppers to postpone purchase decisions in hopes of lower taxes on certain products like consumer goods and electronics, say analysts, while emphasising that the blip is only temporary and sales are set to rebound as clarity improves and festive fervour takes hold. Goods and services are currently charged under a four-tier system with rates ranging from 5 per cent to 28 per cent. GST reform, proposed by the Centre, says that most goods will be charged at either 5 per cent or 18 per cent. Durables such as washing machines, air conditioners and refrigerators will be among the goods charged lower rates under the new GST regime. The GST Council, chaired by Union Finance Minister and comprising ministers from all states and UTs, will meet on September 3 and 4 to discuss the reform. As the industry prepares for the rollout of GST 2.0, the e-commerce sector is witnessing a noticeable shift in consumer behaviour, particularly around high-value .

GST Council meet should promote federalism, not just grab headlines: Cong

Opposition-ruled states have extended their support to cut the number of GST rate slabs and the rates for mass consumption items, while demanding a mechanism to ensure the benefits get passed on to consumers, Congress leader Jairam Ramesh said on Saturday. He also said the Congress hopes that next week's GST Council meeting would not be just a "headline-grabbing exercise so typical of the (Narendra) Modi government". According to Ramesh, the eight opposition-ruled states have also demanded compensation to all states for a period of five years, with 2024-25 as the base year, since their revenues are bound to be adversely impacted by the rate cuts. They have demanded additional levies on 'sin' and luxury goods over and above the proposed 40 per cent be fully transferred to states, he said. "Eight Opposition-ruled states -- Karnataka, Himachal Pradesh, Jharkhand, Kerala, Punjab, Tamil Nadu, Telangana, and West Bengal -- have extended their support to the reduction in the number of GST

Oppn states demand compensation for revenue loss due to GST reform proposal

Opposition-ruled states on Friday said the Centre's proposal for GST rate rejig could result in a revenue loss of about Rs 1.5 crore to Rs 2 lakh crore and demanded compensation for the losses incurred by them. Finance ministers from eight states -- Himachal Pradesh, Jharkhand, Karnataka, Kerala, Punjab, Tamil Nadu, Telangana and West Bengal -- decided to present their proposal to the GST Council at the next meeting on September 3 and 4. Their proposal for balancing rate rationalisation and revenue neutrality suggests levying an additional duty on sin and luxury goods in addition to the proposed 40 per cent rate to maintain the current tax incidence. The proceeds from this levy should be distributed among states, the opposition-ruled states demanded. Briefing reporters after a meeting of the eight states, Karnataka Finance Minister Krishna Byre Gowda said each state is expected to lose 15-20 per cent from its current Goods and Services Tax (GST) revenue. "The 20 per cent GST reven

Trent shares gain 3% on reports of GST threshold hike for garments

Trent was the top gainer in the Nifty index, rising 3 per cent, amid reports of changes in the threshold for readymade garments

FMCG stocks rally: Colgate, GCPL, Dabur surge on GST rate rejig reports

The FMCG index climbed up to 1.7 per cent before easing to trade 1.2 per cent higher at 9:50 AM, while the Nifty50 slipped 0.04 per cent

Auto body knocks on finmin door for faster GST reforms, compensation cess

M&M stops wholesale supply of high-ticket ICE vehicles on sales drop, fear of cess loss

Diwali tax cuts risk worsening India's tariff sting as Trump threat looms

While lower consumption taxes will indeed spur demand, particularly for durables such as autos, TVs and ACs, it may not happen immediately

From July 2017 to Diwali 2025: India's evolving GST journey explained

As PM Modi promises a fresh round of GST reforms, here's a look at how India's biggest tax reform began in 2017 and how it has shaped the economy over the years

ITC chief hails PM's reform vision, says GST overhaul to spur growth

ITC Ltd Chairman Sanjiv Puri on Tuesday hailed Prime Minister Narendra Modi's call for next-generation reforms, particularly in the Goods and Services Tax (GST) framework, saying the move will trigger a virtuous cycle of consumption, investment, growth and employment. He said the government's focus on affordability and accessibility of essential items, including food, will provide significant relief to the middle class, micro, small and medium enterprises (MSMEs), and farmers. "The government's resolve to ensure ease of living by enhancing affordability and accessibility of all items meant for daily consumption will benefit the sizeable middle-class population, MSMEs and farmers," Puri said in a statement. A transparent, simplified and growth-oriented tax structure will not only improve competitiveness of enterprises but also promote ease and cost efficiency in doing business, he added. "The proposed measures will enable formalisation of the economy, create a more tax-compliant ...

GST 2.0 to benefit QSR stocks like Jubilant, RBA, Devyani: JM Financial

GST 2.0 reforms may boost QSR demand as tax rates fall. Analysts see Jubilant FoodWorks, RBA, Devyani International, and Sapphire Foods gaining the most

Blue Star expects AC sales to rise around 20% on tax cut boost, says MD

The eventual tax rate on ACs is not clear but it is now at the maximum 28 per cent, so the planned cut should help dealers and manufacturers, who have struggled this year due to a cooler summer

Festival season cheer on hold as auto buyers await GST relief and discounts

Festival offers are already running with benefits between ₹1.5 lakh and ₹2 lakh on some models

Best of BS Opinion: The RBI's current policy framework has worked well

Today's Opinion Page looks at the RBI's recent discussion paper on inflation targeting, OpenAI's plans for India, the role of institutions in growth, and the recent GST rate cuts boost to growth

GST Council may allow input tax credit for employee group insurance

"ITC on group health and life insurance policies may be taken up for discussion. But there is no proposal to exempt these policies from GST. They will continue to attract 18 per cent," official said

Build a portfolio of equities, fixed income, precious metals: Taher Badshah

'Build portfolio of equities, fixed income, precious metals'

GST rate rationalisation likely to drive growth in life and health policies

GST reduction is expected to enhance affordability and boost life and health insurance sales, especially among price-sensitive segments, though concerns over ITC impact persist