GST Council Meeting: Two-Rate Tax Slab To Be Effective From Sept. 22; Rates Slashed From Roti, Paratha To TVs

Thats all for today folks. Before you go off to bed, here are the key highlights from the GST Council meet.

• The GST council has also approved a two-tier rate structure of 5% and 18%, replacing the existing four major slabs — 5%, 12%, 18%, and 28%.

• Essentials such as milk, paneer, butter and life-saving medicines have been granted steep GST cuts or exemptions, while tobacco products, aerated drinks, luxury cars and yachts will attract higher taxes of up to 40%.

• The changes will take effect from Sept. 22, with phased implementation for certain items.

• GST on cement reduced to 18%.

• GST on small electric cars, electric SUVs and luxury electric cars to remain at 5%.

• The finance minister announced that the compensation cess will now apply solely to tobacco and related products. It will be charged in addition to the 28% GST rate until the pending loan is fully repaid.

• She added that the cess will be withdrawn once repayment is completed.

Have a good night.

"The Government’s decision to reduce GST on Cement from 28% to 18% is a transformative reform — one that will accelerate the nation’s infrastructure pipeline, catalyse industrial expansion, and strengthen India’s march towards a multi-trillion-dollar economy," said Vinod Bahety, CEO - Adani Cement.

"The decision to bring almost all FMCG products under the 5 percent GST slab is commendable. This rationalization will directly reduce prices, make essential goods more affordable for consumers, and drive higher consumption, thereby benefiting every household in India," said All India Consumer Products Distributors Federation.

“The grant of export status to intermediary services would bring to rest litigations on what qualifies as intermediary and accordingly reduce refund denials on this account. Similarly, the changes on post-sale discounts would reduce a large dispute on their allowability,” said Abhishek Jain, Indirect Tax Head & Partner, KPMG.

CBIC's Sanjay Kumar Agrawal

• GST registration process simplified for small businesses

• For companies with less than Rs 2.5 lakh in input tax credit, they'll be able to register within 3 days