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India Unveils Simplified GST Rate Structure

  • India will simplify GST from September 22, 2025, adopting two primary slabs of 5% and 18%, while introducing a deferred 40% rate for luxury and sin goods after cess obligations.

  • The reforms replace the four-tier GST system, exempting staple foods like UHT milk and Indian breads. Parliament enacted legislation following the GST Council’s 56th meeting, confirming implementation and issuing official guidelines.

  • Despite reforms, India retains its dual GST model: CGST and SGST/UTGST on intra-state supplies, and IGST on inter-state transactions. Businesses must update systems to ensure compliance and avoid penalties.

Source: www.fonoa.com



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