Page 6 - Gst

Central govt notifies CGST rates for goods effective September 22

The Union Finance Ministry has notified Central GST (CGST) tax rates for goods, which will be effective from September 22. States will now have to follow suit and notify the State GST (SGST) rates to be levied on goods and services beginning Monday. Under GST, the revenues are shared equally between the Centre and the states. Effective Monday, GST will be a two-tier structure, wherein the majority of goods and services will attract tax of 5 and 18 per cent. A 40 per cent tax will be levied on ultra luxury items, while tobacco and related products will continue to be in the 28 per cent plus Cess category. Currently, Goods and Services Tax (GST) is levied in 4 slabs of 5, 12, 18 and 28 per cent. Besides, a compensation cess is levied on luxury items and demerit or sin goods. With the reduction in rates on most goods, the onus is now on trade and industry to pass on the benefit of these tax rate changes to consumers and align compliance in a timely manner. AMRG & Associates Senior

IRF urges GST cut on helmets to reduce fatalities in road accidents

Geneva-based global road safety body International Road Federation (IRF) on Wednesday demanded a reduction of Goods and Services Tax (GST) on helmets for two-wheeler riders from 18 per cent to nil to encourage vehicle owners to wear helmets and reduce fatalities. IRF in a statement expressed concern at increase in number of road accidents in the country as per latest data compiled by Ministry of Road Transport & Highways (MoRTH) riders of two wheelers had the highest share of road deaths. IRF has written a letter to Prime Minister Narendra Modi to reduce GST on helmets from the present 18 per cent to 0 (zero) per cent, as the two-wheeler riders, being most vulnerable, account for about 31 per cent of deaths due to head injuries. "One of the most effective measures to reduce the two-wheeler accident injuries and fatalities is the use of standard helmets, IRF president emeritus K K Kapila said. Kapila said the helmet usage in India has been found to be low. "It has been noticed that

No GST on insurance a loss for policyholders? What the math shows

Policyholders will pay no GST on health and life premiums from September 22, but insurers lose the ability to claim tax credit on expenses like commissions, rent and software, raising their operating

ICICI Bank gets ₹49 crore GST demand over alleged short payment of tax

ICICI Bank on Wednesday said tax authorities have slapped a demand notice of Rs 49.11 crore on it for alleged short payment of GST. In a regulatory filing, ICICI Bank said, on September 15, 2025, it received an order in appeal under section 107 of the West Bengal Goods and Services Tax Act, 2017, from Additional Commissioner of Revenue (Appeals), West Bengal, raising a demand amounting to Rs 49.11 crore (tax Rs 23.52 crore interest Rs 23.23 crore and penalty Rs 2.35 crore). The aforesaid order in appeal includes an issue relating to GST demand on services provided by banks to customers maintaining specified minimum balances in their accounts. In the past, the bank had received show cause notices (SCNs) and order(s) on the same issue from various tax authorities, it said. While the bank has filed writ petition (s) against the SCNs, since the aggregate/cumulative amount involved in the above crosses the materiality threshold, this matter is being reported, it said. The bank will take

Launch campaigns on GST reforms' benefits, DFS secy tells insurers

DFS Secretary M Nagaraju urged insurers to launch outreach campaigns to publicise GST exemption on life and health policies and ensure benefits reach policyholders

GST reforms to lower tax on coal, reduce power generation cost, says govt

The government on Thursday said that the GST reforms will bring down the overall tax on coal and reduce the cost of power generation. Earlier, coal attracted 5 per cent GST along with a compensation cess of Rs 400 per tonne. The GST Council has recommended the removal of the GST Compensation cess and an increase in the GST rate on coal from 5 per cent to 18 per cent. The new reforms bring down the overall tax on coal grades G6 to G17, which is in the range of Rs 13.40 per tonne to Rs 329.61 per ton. "The average reduction for the power sector is Rs 260 per tonne, which will reduce the cost of generation by 17 to 18 paise/kWh," the coal ministry said in a statement. The reforms will also help in rationalisation of tax burden on coal vis- -vis its pricing. Earlier, a flat rate of Rs 400 per tonne was imposed as GST compensation cess without considering coal quality. This disproportionately affected low-quality and low-priced coal. For example, G-11 non-coking coal, which is the majo

Shoppers hold tight to purses, awaiting new GST rates to take effect

Shradh season adds to caution, slowing retail demand

India must put policy first, politics later to realise its AI Ambition

The country must institutionalise the technology with the sobriety that once anchored Aadhaar and implementation of GST

CBIC chief to meet industry bodies on implementation of GST reforms

To ensure smooth implementation of the GST reform, CBIC chairman Sanjay Kumar Agarwal will be meeting representatives from various sectors, like industry chambers, beginning on Wednesday. The GST council in its 56th meeting last week decided to make Goods and Services Tax (GST) a two-tier structure of 5 and 18 per cent against the current four-slab regime of 5, 12, 18 and 28 per cent, plus a compensation Cess. The new rates will be effective September 22. Sources said the CBIC chief will meet various trade bodies and industries, including Assocham, Ficci, CII and PHDCCI, on September 10 to discuss the GST reforms, rate rationalisation and their implementation. The chairman would also be meeting representatives of the consumer electronics sector, FMCG, common man items, handicrafts, sports goods, toys, miscellaneous sector, and the medical/pharma sector on Wednesday. On September 11, the CBIC chief will also meet representatives of the hospitality, renewable energy, construction ..

GST exemption for flight simulators to help reduce training costs: Govt

The Civil Aviation Ministry on Tuesday said the GST exemption for flight simulators and motion simulators will help airlines and academies in reducing their expenses on training equipment. Also, a uniform Goods and Services Tax (GST) of 5 per cent for all drones provides significant policy certainty and eliminates classification disputes, the ministry said in a release. On September 4, the GST Council decided to rationalise the tax rates into two slabs -- 5 per cent and 18 per cent -- and also reduce the rates on various items. The revised rates will come into force from September 22. Currently, the GST rate is 18 per cent for drones with integrated cameras and 28 per cent for drones classified for personal use. Under the new structure, the ministry said a uniform GST of 5 per cent has been introduced for all drones, regardless of whether the camera is integrated or separate and irrespective of whether they are used for commercial or personal purposes. "Greater clarity for ...

Yamaha Motor announces price cut to pass on GST rate reduction benefit

Two-wheeler maker India Yamaha Motor Pvt Ltd on Tuesday announced a price cut of up to Rs 17,581 across models to pass on benefits of GST rate reduction. The company will extend the complete benefit of the recent GST revision on two-wheelers to its customers, effective September 22, 2025, when the revised rates come into effect, India Yamaha Motor (IYM) said in a statement. Under the revised prices, the R15 model will cost Rs 1,94,439, down from Rs 2,12,020 currently. On the other hand, price of RayZR model will be reduced by Rs 7,759 to Rs 86,001 from Rs 93,760 at present. Welcoming the reduction in GST rates, Yamaha Motor India Group Chairman Itaru Otani said, "We would like to thank the Government of India for the timely reduction in GST on two-wheelers. This step will provide a strong boost to the two-wheeler demand during the festive season." By making two-wheelers more affordable, he said it will not only benefit customers directly but also stimulate overall consumption and

GST revamp: Will reduce prices of ICE vehicles, says TVS CEO Radhakrishnan

TVS Motor Company on Monday said it will pass on the full benefit of the GST rate reduction to customers across its internal combustion engine portfolio. With the GST Council reducing GST rates on ICE vehicles from 28 per cent to 18 per cent, there will be significant savings on the company's products, TVS Motor Co said in a statement without divulging details. Electric vehicles remain unaffected and continue to enjoy the concessional rate of 5 per cent GST. The benefits will be available to customers starting September 22, 2025, it added. "The GST rate rationalisation is a bold and transformative move that will accelerate consumption across society...We will pass on the full benefit of GST rate reduction to customers across our ICE portfolio," TVS Motor Company Director & CEO, KN Radhakrishnan said. Further, the company said it will be undertaking extensive communication measures to apprise customers of the benefits accruing from GST rate reductions.

PM Modi attends workshop for BJP MPs, resolution on GST reforms passed

Prime Minister Narendra Modi on Sunday attended a workshop for BJP MPs where a resolution was passed lauding the government for the GST reforms ahead of the party's nationwide outreach to highlight its benefits. Modi remained in the midst of the MPs and attended different sessions on the first day of the "Sansad Karyashala". Sources said the prime minister gave suggestions and shared his views while attending meetings of MPs divided into different groups. In a meeting in which members of a few parliamentary committees were combined, he asked them to take active participation in discussions and in reading and preparing reports. Union Parliamentary Affairs Minister Kiren Rijiju said MPs from the BJP's allies will also join the meeting on Monday, and Modi will address the ruling alliance members. NDA MPs are also likely to participate in a mock polling exercise in preparation for the September 9 vice presidential election. Leading party leaders, including Union ministers Amit Shah,

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

Experts welcome GST Council move to ease post-sale discount disputes

GST Council amends rules on post-sale discounts to allow credit notes without invoice linkage, a change experts say will reduce litigation and benefit businesses

Tata Motors to cut passenger vehicle prices by up to ₹1.45 lakh from Sep 22

Tata Motors on Friday said it will cut passenger vehicle prices ranging between Rs 75,000 and Rs 1.45 lakh effective September 22 to pass on the full benefit of GST reduction to customers. The Mumbai-based auto major said that its small car Tiago will see a price drop of Rs 75,000, Tigor Rs 80,000, and Altroz Rs 1.10 lakh. Similarly, the price of compact SUV Punch will come down by Rs 85,000 and that of Nexon by Rs 1.55 lakh. Mid-sized model Curvv would also see a price cut of Rs 65,000, Tata Motors said in a statement. Prices of company's premium SUVs - Harrier and Safari, wll see a price reduction of 1.4 lakh and Rs 1.45 lakh respectively, it added. "In line with the Hon'ble Prime Minister's vision, the Hon'ble Finance Minister's intent and our Customer First philosophy, Tata Motors will fully honour the intent and spirit of this reform by passing on the entire benefit of the reduction in GST to our customers," Tata Motors Passenger Vehicles MD Shailesh Chandra said. The reduct

GST cut on agri inputs to lower cultivation costs, boost farmers' incomes

The GST reduction on agricultural inputs and machinery could lower farmers' cultivation costs, boosting incomes, while also making seafood products more affordable for domestic consumers

GST cut to boost FMCG demand; Britannia, Nestle among top Nomura picks

The GST Council has the rates on several staple and essential categories from 18 per cent to 5 per cent