- India plans to cut consumption taxes by October to boost the economy.
- The government will propose a two-rate structure of 5% and 18%, removing the 12% and 28% rates.
- 99% of items in the 12% category will move to 5%, benefiting companies like Nestle and Hindustan Unilever.
- The tax cuts aim to counteract US tariffs on Indian goods.
- Modi announced the reforms during Independence Day celebrations, promising changes by Diwali.
- The GST Council will make the final decision, with a meeting set for October.
- Citi estimates a revenue loss of around 500 billion rupees, or 0.15% of GDP, due to the tax changes.
Source: gdnonline.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
Latest Posts in "India"
- Meghalaya Extends VAT Exemption on Fruit Wine to 10 Years, Boosting Local Wine Industry
- Allahabad HC: Arbitrary GST Registration Cancellations Without Reasons Amount to ‘Economic Death’ for Businesses
- Chennai Fake GST Invoice Racket Busted; ₹350 Crore Evasion Suspected, Prime Accused Arrested
- Overpaid GST: Rectification or Refund? Understanding When to Adjust and When to Claim Refund
- Insurance Brokers Push for Zero-Rated GST to Restore Input Tax Credit and Prevent Premium Hikes
