- Indian Finance Minister announced major GST tax cuts on consumer items effective September 22
- New tax rates will be 5% and 18%, with a new 40% slab for high-end goods
- Government expects a revenue loss of 480 billion rupees, less than economists’ estimates
- Inflation could decrease by 1.1 percentage points if cuts are passed to consumers
- GST on daily items like packaged food, medicines, and toiletries reduced to 5%
- Tax on life and health insurance products abolished
- Tax cuts on cars, TVs, and cement may boost festival season sales
- Carmakers and consumer appliance manufacturers expected to benefit
- Effective tax on big cars reduced to 40%, making luxury cars more attractive
- GST on electric vehicles remains at 5%, benefiting carmakers like Tata Motors and Mahindra & Mahindra
Source: reuters.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.
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