- India is implementing major GST reforms with tax cuts starting October 2025.
- The GST system will simplify from four rates to two: 5 percent and 18 percent.
- Goods currently taxed at 12 percent will move to the 5 percent bracket.
- Luxury and sin goods will have a special tax rate of 40 percent.
- The reform aims to boost domestic consumption and address global trade pressures.
- Government revenue may decrease by ₹1.1 trillion annually, but analysts see it as manageable.
- Vertex will support businesses with India-specific tax content and automated tax solutions.
- Businesses should review product classifications and monitor updates for compliance.
Source: vertexinc.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"
- GST 2.0: Key Changes, New Rates, and Business Impact Explained
- 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
