- India’s GST framework is undergoing major reforms with the introduction of GST 2.0, featuring rate cuts and structural simplifications. The GST Council has reduced the four-tier structure to two slabs: 18% for standard goods/services and 5% for essentials. A 40% rate applies to luxury and sin goods. Key changes include exemptions for life and health insurance, reduced rates for FMCG products, and NIL rates for critical medical supplies. Luxury apparel and certain sin goods will see increased rates. New rates take effect on September 22, 2025, with immediate phased implementation for some sin goods. Businesses must manage transitional supplies and apply correct rates based on specific transaction dates.
Source: lexplosion.in
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"
- Guide to GST Refunds for Unregistered Persons: Cancelled Service Contracts Explained
- India Reduces GST on Solar and Wind Equipment to 5%, Cutting Renewable Energy Project Costs
- India Unveils Next-Gen GST: Simplified Tax Structure, Lower Rates, Boosts Business and Affordability
- Piyush Goyal Urges Industries to Pass GST Benefits to Consumers for Economic Growth
- CESTAT Rules Preloaded Software Must Be Included in Customs Valuation of Navigation Devices
