GST EXEMPTION
GST rate cuts to benefit 10 crore dairy farmers: Ministry of Cooperation
The GST rate cuts on dairy products, farm inputs, and food processing items are set to positively impact over 10 crore dairy farmers and bolster the cooperative sector, according to the Ministry of Cooperation. This restructuring addresses inverted duties in fertilizer manufacturing, aiming to stabilize prices for farmers and ensure timely input availability.
GST Council slashes tax slabs to two to spur consumption; announces key measures for middle class
GST Meeting News: The Goods and Services Tax (GST) Council has streamlined India's indirect tax system. It reduced the existing four tax slabs to two. Many items will become cheaper as they move to lower tax brackets. This aims to boost consumer spending. The change follows Prime Minister Narendra Modi's promise of a GST overhaul.
GST reforms bring big relief to people who suffered huge tax burden under Congress: BJP
Ashwini Vaishnaw says GST rate cuts will benefit common people and boost India's economy. The new GST rates will be effective from September 22, the first day of Navratri. He criticized the Congress for high taxes before 2014. Vaishnaw highlights PM Modi's commitment to the welfare of the middle class.
India needs campaign for better opposition, their criticism of GST ill-informed: FM Nirmala Sitharaman
Finance Minister Nirmala Sitharaman criticizes the opposition's GST reform remarks. She calls their understanding of GST implementation ill-informed. Sitharaman reminds that Congress ministers were also part of the decision-making. She emphasizes the need for better opposition leaders. Sitharaman defends the government's pro-people reforms. She highlights the GST Council's decision to limit tax slabs.
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.
Tax tweak on coal yields net positive for discoms
The GST rationalization on coal, increasing the rate to 18% while eliminating the ₹400/tonne compensation cess, is projected to lower power generation costs for companies by approximately 17 paise per unit. This change is expected to benefit coal-based power plants using specific grades of coal, ultimately reducing the cost of supply for distribution companies by around 12 paise per unit.
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GST exemption on insurance a game changer, says PB Fintech’s Yashish Dahiya
PB Fintech's CEO, Yashish Dahiya, hails the GST exemption on individual life and health insurance as a landmark reform, emphasizing its potential to boost awareness and adoption. He believes the government's move sends a strong signal about the importance of these essential products for families.
HDFC Life shares in focus as revised GST structure to kick in from September 22
HDFC Life shares: The insurer announced adoption of the revised GST structure on all insurance products from September 22, 2025. The company said the GST cut will make policies more affordable, boost demand, and aid long-term growth
Spreading the safety net farther and wider
Waiving GST on health and life insurance premiums, though potentially regressive, could boost insurance penetration and reduce the state's social security burden. This move aims to address affordability issues, attract foreign investment, and stimulate domestic consumption amidst slowing growth. Ultimately, it seeks to improve insurance sector reforms and mitigate external volatility.
GST on insurance: Planning to delay premium payment after Sept 22 to get rate-cut benefit? Why it may not be a good idea
The Goods and Services Tax (GST) Council has reduced insurance GST rates from 18% to zero. This change applies to policy renewals after September 22, 2025, and new policies. So if you are planning to delay your premium payment after the date, it may not be a good idea.
GST 2.0 cuts prices of essentials, but wheat flour still taxed 5%
GST 2.0 has reduced taxes on many essentials. Packaged Indian breads now have zero GST. However, wheat flour still has 5% GST on smaller packs. This affects home-cooked rotis. Manufacturers buying in bulk are exempt. Roller Flour Millers' Federation of India wants GST exemptions extended to all wheat flour. They highlight that most Indian rotis are made at home.
GST rate cuts complement Ayushman Bharat, PMJAY, says health ministry
The government's GST reforms aim to make healthcare more accessible and affordable by exempting health and life insurance premiums, reducing taxes on essential medicines and medical products. These changes complement initiatives like Ayushman Bharat and PMJAY, encouraging wider insurance adoption and lowering healthcare costs for citizens. The move also supports preventive healthcare by maintaining high taxes on harmful goods.
GST rate cut to spur demand in Rs 19 lakh cr dairy industry: Government
The government is set to implement new GST rates for the dairy sector. Most dairy products will either be tax-exempt or attract only a 5% tax. Ultra-high temperature milk and paneer will have no GST. Butter, ghee, cheese, and ice cream will be taxed at 5%. This reform aims to boost the dairy sector and benefit farmers and consumers.
New GST rates: Is the puzzle over popcorn, paranthas and paneer finally solved?
New GST Rates: The GST Council has approved a new tax structure effective September 22, resolving long-standing confusions on food items. Popcorn, paranthas, and paneer now have simplified rates, with pre-packaged and labelled items taxed at 5%. Online gaming and IPL tickets will face a higher 40% GST.
Pay more for IPL matches; movie tickets under ₹100 get cheaper
The GST Council has raised tax on sporting events like IPL to 40% while easing levies on cinema tickets under ₹100, now taxed at 5%. Higher-priced movie tickets remain at 18%. The move balances revenue from marquee sports with relief for small-ticket entertainment, despite industry calls for broader cuts.
BJD demands full GST exemption on kendu leaf and handloom products
Odisha's BJD party wants no GST on kendu leaf and handloom items. They are asking the central government to make up for GST revenue changes. The party says tribal and dalit people who collect kendu leaves need this help. BJD has been asking for this exemption since 2018. They believe it will support poor weavers who make handloom products.
Insurance companies bear the burden of GST exemptions, have to reverse accumulated ITC
Following GST revisions, individual life and health insurers face the burden of reversing Input Tax Credit accumulated until September 21, 2025. While policyholders benefit from premium exemptions starting September 22, insurers must reverse unutilized credits, impacting their finances. Experts suggest a phased reversal or refund mechanism to balance consumer benefits and industry sustainability.
GST cut on drugs, medical devices to provide relief to patients: Industry players
The government is reducing GST on medicines and medical devices. Lifesaving drugs are exempt. This action will help patients and families. It will also make healthcare more affordable. Sudarshan Jain and Anil Matai welcome the changes. Ameera Shah and Shobana Kamineni also support the move. Himanshu Baid says it will improve access to medical technologies.
Kerala to see Rs 8,000-10,000 cr annual revenue loss due to GST rate rationalisation: FM Balagopal
Kerala anticipates an annual revenue loss of Rs 8,000 to Rs 10,000 crore due to GST rate cuts, according to Finance Minister K N Balagopal. While supporting the price-reducing cuts, he urged the central government to ensure benefits reach the public.
GST Council retains 28% tax and cess on tobacco, sin goods
The Union finance minister will decide on the date when the new tax rate for these items will be applicable. Currently, such products attract the highest GST rate of 28% plus compensation cess, central excise duty and national calamity contingent duty, taking the total indirect tax incidence to 53%. Average annual GST collection from tobacco products in the past five years amounted to ₹51,000 crore, along with additional education cess and surcharges from tobacco manufacturers totalling ₹27,660 crore.
Exemption of GST from life and health insurance premium to make products affordable: Insurers
The GST Council's landmark decision to exempt insurance premiums from GST is poised to revolutionize the insurance sector. Insurers hail this move as a game-changer, anticipating increased affordability and wider insurance penetration. This exemption, covering life and health insurance, aims to ease financial burdens and promote health security for citizens, potentially driving a shift towards accessible digital solutions.
GST 2.0 explained: When will new GST rate for life, health insurance be applicable?
In a significant move, the GST Council announced on September 3, 2025, that individual life and health insurance premiums will be exempt from GST. The council also reduced GST rates on medicines to a concessional 5%, aiming to lower healthcare costs.
Government cuts GST on solar and wind energy, boosting green tech adoption
The GST Council has reduced the tax on solar and wind energy equipment to 5% from 12%, while increasing the rate on coal and lignite to 18% from 5%. This move aims to boost the green energy sector by lowering project costs and encouraging wider adoption. Experts believe this could reduce solar power costs by 10-15% and stimulate domestic manufacturing.
Finally have to follow Rahul Gandhi's advice: Pawan Khera slams Centre on GST reforms after 8 years
Congress leaders Pawan Khera and P Chidambaram have criticized the Centre's next-generation GST reforms, deeming them overdue. They highlight Rahul Gandhi's earlier advocacy for an 18% GST cap, questioning the government's delayed response. The reforms, announced by Finance Minister Nirmala Sitharaman, aim to reduce GST rates, providing relief across various sectors with revised slabs of 5%, 18%, and 40%.
ICICI Pru, LIC, other insurance stocks rise up to 6% after GST council scraps tax on life, health policies
Insurance stocks: GST Council has scraped 18% tax on all individual life and health insurance policies, effective Sept 22, 2025. Relief extends to ULIPs, endowment, health plans, and reinsurance. GST on goods carriage third-party cover cut from 12% to 5%.
ITC, HUL, other FMCG stocks surge up to 7% as GST on daily essentials slashed to 5%
Fast-moving consumer goods companies saw a surge after the GST Council reduced tax rates on essential items. Stocks of Britannia Industries, Dabur, and Colgate-Palmolive rose sharply. Hindustan Unilever and ITC also experienced gains. The new rates will be effective from September 22, 2025.
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.
Will insurance premiums become cheaper in GST 2.0?
The GST Council has eliminated the 18% tax on health and life insurance premiums, a move under PM Modi's GST 2.0 reforms aimed at simplifying the tax structure. This exemption is expected to lower premiums, potentially boosting demand and increasing insurance accessibility for a wider population, though insurers may face short-term margin pressures.
GST cut on insurance premiums may lower costs, insurers brace for near-term impact: Report
The GST Council is considering GST rate cuts on health and term insurance, potentially lowering premiums for policyholders. While a full exemption could reduce premiums significantly, it may lead to a revenue shortfall for the government.
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