The recently announced GST reforms are truly transformational — reshaping India’s tax landscape with far-reaching benefits for citizens, businesses, and the economy at large.
Key Decisions (as per Press Release):
- Simplified Structure → Transition from 4-tier rates to 5% & 18% slabs, plus a 40% special rate for sin/luxury goods.
- Consumer Relief → Items like hair oil, shampoo, butter, cheese, utensils, diapers, sewing machines now under 5% GST.
- Daily Essentials → UHT Milk, paneer, Indian breads moved to 0% GST.
- Healthcare Boost → No GST on all individual life & health insurance policies.
- Sectoral Gains → Medical devices, Agri machinery & Renewable energy at 5%; small cars, 2-wheelers, ACs, TVs & dishwashers at 18%.
- Luxury/High-End → SUVs, large cars, gambling, casinos, betting & online gaming at 40% GST.
- Farmers’ Relief → Fertilizers, tractors & irrigation equipment at 5%.
- Effective from 22nd Sept 2025 (except tobacco/cigarettes until cess cleared).
- GSTAT operational by Sept 2025 → Hearings start Dec 2025, backlog allowed till June 2026.
- Ease of Doing Business → Non-risky businesses get 3-day GST registration; 90% provisional refunds via IT automation.
Why It Matters
This landmark reform is consumer-friendly, industry-aligned, and compliance-simplified:
- Lowers household expenditure
- Boosts healthcare & renewable energy
- Supports MSMEs & exporters
- Reduces classification disputes
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