Page 5 - Latest Updates on GST Revamp

GST rate cuts likely to ease inflation, boost growth, says FinMin report

Recent GST rate cuts will help lower inflation over the next year and also bring a further upside bias to the country's growth prospects, the Finance Ministry said in its monthly report. However, "this is not the time to drop our guard. Uncertainties and risks persist," it said, adding that for now, the risks appear manageable, but they are there. If tariff uncertainties persist, there will be an impact on export sectors, with spillover risk to domestic employment, income and consumption. The decision by the US government to impose a fee hike on new H1B visa-seekers is a reminder of the risks of trade uncertainties, affecting the hitherto unaffected services sector, the Finance Ministry said in its Monthly Economic Review. The central government's reform agenda is expected to cushion the economy against the adverse effects of trade disruptions, it added. "The near-term outlook, therefore, is characterised by steady, reform-driven growth rooted in macroeconomic discipline and adapti

HUL expects near-flat Q2FY26 growth as GST rate cuts likely to hit sales

Leading FMCG major HUL on Friday said that while reduced GST rates will support long-term consumption, short-term order postponement due to anticipation of lower tax led to "near flat to low-single digit" business growth in the September quarter. HUL, which owns popular brands like Lux, Rin, Surf Excel, and Ponds, has witnessed a transitory impact "in the form of disruption at distributors and retailers" across channels to clear existing inventories at old prices. "This has resulted in postponement of ordering in anticipation of receiving new stocks with updated prices and lower orders across the overall portfolio as consumers delayed their pantry buying," said HUL in a regulatory filing. This disruption resulted in a short-term impact on sales for the company in the September quarter. "Given our existing pipeline inventory in the channels, we expect this impact to continue into October as well," he said. Though these reforms are expected to increase disposable income and drive ..

With $57 bn valuation, Maruti becomes 8th most valuable carmaker globally

Maruti Suzuki India, the largest unit of Japan's Suzuki Motor, has surpassed global heavyweights like Ford Motor, General Motors, and Volkswagen AG. It has even surpassed its Japanese parent company

Festival season e-commerce sales jump higher as GST cuts boost demand

Consumer behaviour this season reflects a bullish sentiment, fuelled by GST-enabled price reductions that have lowered costs in high-ticket categories such as electronics and pushed festive demand up 23-25 per cent across metropolitan and emerging markets. The GST reforms, effective from September 22 -- the first day of Navratri --reduced tax rates in several high-demand categories, including large-screen TVs, mid-range fashion and furniture, providing direct price benefits to consumers. These changes have not only lowered retail prices but also encouraged shoppers to look beyond tactical discount-hunting towards more aspirational purchases, lifting participation from tier 2 and tier 3 cities and stimulating growth in discretionary spending. According to market research firm Redseer, the reduction of GST on large TVs from 28 to 18 per cent led to a 6-8 per cent fall in retail prices, boosting demand for premium models. Fashion items priced below Rs 2,500 now attract just 5 per cent

Dairy group Hatsun Agro targets 15% revenue growth after GST revamp

India, the world's largest milk producer, is in the midst of trade negotiations with Washington and the demand for opening up its dairy sector to US corporations has been a sore point

GST cut will give impetus to demand: Tata Consumer's Sunil D'Souza

Tata Consumer MD Sunil D'Souza says GST cuts and increased government spending will put more money in consumers' hands, boosting demand and driving long-term growth

GST cuts, premiumisation and scooter launches boost TVS Motor outlook

TVS Motor's stock is expected to gain further with GST rate cuts, premiumisation, new scooter launches, and robust sales momentum in domestic and export markets

Efficient administration: GST Appellate Tribunal needs close monitoring

The launch of the GST Appellate Tribunal marks a key reform in India's tax system, but its success will hinge on capacity, efficiency, and fair handling of disputes

ITC upbeat on festive demand with GST relief, but flags inflation risks

Leading FMCG player ITC expects a surge in the festive demand this season after the GST rate cut, and reduced prices will have a multiplier impact on volumes for the packaged food industry, a senior company official said. However, the FMCG major is also cautious about the existing inflation on some products, its Executive Director and Divisional Chief Executive of the Foods Business Division, Hemant Malik, said. ITC, which owns popular brands as Aashirvaad, Sunfeast, Bingo!, and B Natural, has already passed on the benefits of the GST rate cuts applicable from September 22, and expects a boost in consumption and investment as well as a multiplier impact on the economy. "A lot of expenditure by consumers is also driven by sentiment. When the message reaches consumers that prices have come down, it does allow people to open their purses. Once that happens, it is a multiplier impact in terms of volume increase It has a multiplier impact on the economy, both from the aspect of employme

Digital payments jump to ₹11 trillion on first day of new GST rates

Digital payments surged to ₹11 trillion on the first day of new GST rates, with RTGS, UPI, NEFT, IMPS, debit and credit card transactions all seeing sharp increases

GST rate cut from 12% to 5% poised to brighten India's art landscape

Auction houses, galleries say the rate cut from 12% to 5% will boost liquidity, attract younger collectors, fuel growth

GSTAT rollout from Oct to ease GST litigation and unlock business capital

The GST Appellate Tribunal will begin phased rollout in October 2025 with digital filing, faster appeals, and backlog clearance to ease GST litigation and free up capital

No major rise in insurance sales despite zero GST, say distributors

The industry, however, believes that it is too early to see a proper trend

GSTAT launch: One forum for state, Centre GST appeals, says FM Sitharaman

Sub heading: 4.8 lakh pending appeals to be heard, says GSTAT Head Mishra

GST invoices getting smarter from October: Here's what you need to know

According to a recent advisory issued by the GSTN, the changes are aimed at reducing disputes, lowering the compliance burden, and increasing transparency in the return filing process

Industry has room to factor in costs in terms of ITC accumulation: Official

The official added that businesses should act in good faith, keeping their bona fide intent in mind. The accumulation of ITC has arisen because GST rates on final products have been cut under GST 2.0

Banking system liquidity turns deficit amid tax payments, GST outflows

Experts said the liquidity crunch is expected to be temporary and will pick up on the back of government expenditure

Car dealers take ₹2.5K cr cess blow, turn to original equipment makers

Industry estimates impact for every dealer at ₹3-5 crore

Several FMCG brands are ditching 'magic' price points: Here's what they are

Following the rationalisation of rates under the new GST reforms, most daily-use items have shifted to the lower 5 per cent tax slab, creating a challenge for FMCG firms

GST cuts to fuel 15-20% festive sales surge in electronics: Analysts

GST cuts have lowered electronics prices by 7-9 per cent, fuelling festive demand as consumers trade up to premium TVs and appliances and e-commerce giants push discounts