GOODS AND SERVICES TAX REFORMS
Much-fairer system: Shashi Tharoor welcomes GST reforms
Shashi Tharoor, a Congress MP, welcomed the recent Goods and Services Tax (GST) reforms. He called the reforms a fairer system. Tharoor mentioned that the Congress party had been requesting these changes for years. Mallikarjun Kharge, Congress President, alleged pressure from Donald Trump influenced the GST reforms. The GST Council decided to rationalise GST rates to two slabs.
Behind the scenes: Sitharaman chaired 3 separate meetings on GSTN preparedness for GST 2.0
Finance Minister Nirmala Sitharaman is preparing for the rollout of the next-generation GST with reduced rates and fewer slabs, effective September 22. Three meetings were conducted to assess GSTN's readiness and the necessary technological upgrades. The GST Council decided to decrease the number of slabs to two: 5% and 18%, with a 40% rate for ultra-luxury and tobacco products.
GST done, advisers bat for land, labour reforms
Experts advocate for process reforms, deregulation, and ease of doing business to propel India towards high growth. Key reforms include land and labor reforms, trade liberalization, privatization, and judicial efficiency. The government is prioritizing next-generation reforms to achieve long-term goals, focusing on low-hanging fruits to improve living and business conditions.
BJP resolution urges businesses to pass on GST cut benefits to consumers
A BJP resolution, lauding PM Modi's GST rate cut, urges manufacturers and traders to pass on the benefits to consumers, fostering fairness and growth. The resolution emphasizes that lower prices will drive demand, boosting prosperity and strengthening the nation.
GST overhaul a people's reform, touches every family: FM Nirmala Sitharaman
Finance Minister Nirmala Sitharaman calls GST overhaul a 'people's reform'. Rate rationalization will benefit families and boost the economy. Prices of nearly 400 products will decrease from September 22. Premium on health and life insurance will be tax-free. The GST slab structure will change to 5% and 18%. Daily food items will fall under the 5% slab.
Sitharaman writes to state FMs, thanks them for role in GST overhaul
Union Finance Minister Nirmala Sitharaman thanked state finance ministers for their support in overhauling the Goods and Services Tax (GST) regime. The GST Council unanimously agreed to reduce rates on various products, benefiting the common man. States initially worried about revenue loss, but Sitharaman assured them increased sales would compensate, fostering consensus and cooperative federalism.
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GST reforms got nothing to do with any external factors: Ashwini Vaishnaw
Union Minister Ashwini Vaishnaw says the GST reforms began about a year and a half ago. These reforms are unrelated to external factors. The goal is to reform, perform, and transform the economy. The new GST rates will take effect on September 22, during Navratri. These changes aim to reduce the tax burden and boost economic growth.
New GST rates, coming into effect this Navratri, to boost economy: Ashwini Vaishnaw
Union Minister Ashwini Vaishnaw announced that the 2025-26 Budget's income tax relief and GST rate rationalization will significantly boost India's economy. Effective September 22, the GST reforms will simplify taxation, reduce rates on daily-use goods, and stimulate consumption, potentially adding Rs 20 lakh crore to the GDP.
USIBC lauds India's GST reforms, calls it a boost for business and investment sentiment
The US-India Business Council (USIBC) has lauded India's restructured Goods and Services Tax (GST), praising Prime Minister Modi, the GST Council, and the Ministry of Finance for the move. USIBC believes the rationalization of GST slabs and reduced tax rates across key sectors will enhance the business environment, attract global investment, boost consumption, and improve affordability for consumers.
GST reforms transformative, will ensure tax certainty: CBIC chief
CBIC Chairman Sanjay Kumar Agarwal announced transformative GST reforms aimed at providing tax certainty and stability for investors. While initial revenue may be slow, the reforms are expected to boost consumption and growth. The focus will shift to tackling tax evasion and enhancing the system, with the GST Appellate Tribunal expected to be operational by December.
India will continue to buy Russian oil, says FM Nirmala Sitharaman
Finance Minister Nirmala Sitharaman affirmed India's continued purchase of Russian oil, prioritizing national interests in energy decisions. She emphasized fiscal discipline and building public trust as crucial for economic progress. Sitharaman highlighted tax reforms, particularly GST, and cautioned about the persistent challenge of managing the fiscal deficit.
Piyush Goyal slams Congress over their high taxes, says new GST rates will fuel India's 'cycle of growth'
Commerce Minister Piyush Goyal criticized the Congress for past high taxes, asserting the BJP's GST reset will spur investments and job creation, fueling India's growth cycle. He highlighted that the new regime's lower taxes would benefit consumers and businesses, making India more attractive to investors. The Centre assured support to states facing potential fund shortages due to the shift.
Industry must pass on GST gains to buyers: Piyush Goyal
Piyush Goyal urges industry to pass on GST reduction benefits to consumers, anticipating boosted demand, exports, and economic growth. GST reforms, effective September 22, are expected to lower input costs for MSMEs and exporters, reducing inflationary pressures. India is also diversifying export markets amid US tariffs, exploring opportunities with countries like UAE and Singapore.
India bonds rise as fiscal worries ease, US peers up
Indian government bonds saw a slight increase. This is due to reduced worries about fiscal issues after tax changes. Also, higher U.S. Treasury yields boosted market confidence. The benchmark 10-year bond yield moved to 6.4814%. Market anticipates potential measures from the Reserve Bank of India. U.S.
The makeover announced by GST Council is welcome, but a cup half-full with red tape still fluttering
The GST Council's recent meeting delivered on the promise of GST reduction and rationalization ahead of Diwali, reaffirming commitment to the unified tax reform. While rates on some goods were reduced and classifications simplified, the council fell short of fully eliminating red tape and subjective interpretations.
GST rationalisation progressive step, big booster to India's economic growth: Mukesh Ambani
Mukesh Ambani welcomes the government's GST reforms. He says it will boost India's economic growth. Isha Ambani states Reliance Retail will pass on the benefits to customers. The GST changes aim to make products cheaper and simplify business. Reliance Retail commits to transparently sharing cost reductions with consumers. The company believes this will benefit various stakeholders and strengthen consumer confidence.
Bankers say GST Council decision to boost consumption, credit growth
Bankers anticipate that the GST Council's recent decisions, including reduced tax rates on various goods, will significantly boost consumption and credit expansion. This reform, effective September 22, 2025, is expected to increase disposable incomes, stimulate demand across sectors like retail and agriculture, and ultimately drive substantial economic growth. Businesses will also benefit from simplified compliance and improved competitiveness.
Govt delivers 'GST Diwali bonanza': Cheaper essentials, big relief on insurance premiums
India's Goods and Services Tax (GST) undergoes a major overhaul, eight years after its launch, with the GST Council approving significant rate cuts on numerous everyday items. Effective September 22nd, the new rates aim to boost consumption by shifting to a two-slab structure of 5% and 18%, abolishing the 12% and 28% rates.
GST 2.0: Biggest gainers and losers of the new tax regime
India has announced revised Goods and Services Tax (GST) rates. Finance Minister Nirmala Sitharaman announced GST cuts on many items. The changes will impact good from dairy items to cars. New rates take effect from September 22. Daily use items see lower taxes. Cars, TVs, and cement also get tax cuts. Apparel costing over 2,500 rupees will see a tax increase.
Trump’s tariff pains, Modi’s GST relief: Govt gives a reform armour to every Indian
India rolls out GST 2.0 reforms to boost domestic consumption and shield the economy from the impact of US tariffs. The revamped GST structure simplifies tax slabs and lowers rates on essential goods and services, putting more money in the hands of households and businesses. Experts say the reforms could give a meaningful lift to GDP, while rising consumer confidence across urban and rural India signals stronger spending ahead.
Heavy lifting on GST done at last
Goods and Services Tax rates see a collapse with many items moving to lower slabs. Opposition to the reform reduces, making rate adjustments easier. India now operates with four rates, effectively a two-rate system. This shift aims to boost consumption, aligning with earlier income tax and interest rate cuts. The move also counters trade friction with the United States.
PM Modi welcomes GST council’s approval of rate cuts, says changes will benefit every section of society
The GST Council, with PM Modi's endorsement, has approved comprehensive GST reforms, including rate rationalization and process simplification. Finance Minister Sitharaman announced a significant merger of GST slabs, aiming to boost affordability and consumption. Daily-use items see rate reductions, benefiting the common man, while key sectors like agriculture and health receive support through structural changes and simplified compliance.
GST 2.0 with two-slab structure to roll out from September 22
India's GST framework is undergoing a significant overhaul, set to begin on September 22nd, simplifying the existing four slabs into a two-rate system of 5% and 18%. Essential goods will be taxed at 5%, while most others will fall under the 18% standard rate. However, tobacco products will maintain current rates until compensation cess obligations are met.
GST Council meet begins to deliver on PM Modi's Diwali gift promise: What's coming for auto, insurance, personal care and electronic sectors?
Chaired by Finance Minister Nirmala Sitharaman, the GST Council is convening for two days to discuss a significant overhaul of the Goods and Services Tax. The proposed reforms aim to reduce tax rates on everyday items, potentially shifting most goods from the 12% bracket to 5% and from 28% to 18%.
GST Council meets Wednesday; tax cuts on daily use items in offing
The Goods and Services Tax Council will soon consider a major GST reform. The Centre proposes to reduce tax rates on many daily use items. Electric vehicles may see a 5 percent tax. Most common food items could move to the 5 percent tax bracket. Electronic items may also become cheaper. Opposition states seek compensation for potential revenue loss.
ET Graphics | G 2.0: A reform story
The Goods and Services Tax Council is set to commence a two-day meeting on Wednesday to discuss significant reforms to the GST structure, which was implemented eight years ago. Prime Minister Narendra Modi has called the proposed changes a 'Diwali gift,' as the Centre aims to lessen the tax burden on the general public and simplify compliance procedures for businesses.
Next-gen GST reforms will set economy open and transparent, says Finance Minister Sitharaman
Union Finance Minister Nirmala Sitharaman announced next generation GST reforms. These reforms aim to create an open and transparent economy. The reforms will reduce compliance burdens and benefit small businesses. PM Modi announced a task force to simplify regulations. Banks are urged to expand credit and support infrastructure development.
GST 2.0 should pave way towards single tax rate: Report
A Think Change Forum report advocates for GST 2.0 to adopt just two slabs—5% and 18%—capping the peak rate at 18% to simplify the tax system. The report, released ahead of a GST Council meeting, suggests this move would boost consumption, improve compliance, and generate higher revenues by eliminating anomalies and reducing litigation.
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