GST Council Meeting Live: Key Highlights
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She added that the cess will be withdrawn once repayment is completed.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.
GST Council Meeting Live: Reduced GST On Cement To Accelerate Infrastructure Pipeline
"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.
GST Council Meeting Live: Cut In GST To Reduce Prices, Make Essential Goods More Affordable For Consumers
"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.
GST Council Meeting Live: Post-Sale Discounts To Reduce Large Dispute
“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.
GST Council Meeting Live: Small Businesses To Register Within Three Days
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
GST Council Meeting Live: FM Sitharaman's Office Releases List Of Reforms
"These reforms have a multi-sectoral and multi-thematic focus, aimed at ensuring ease of living for all citizens and ease of doing business for all," said FM Sitharaman's office in a post on X.
GST Council Meeting Live: GST 'Nothing To Do' With Tariffs
FM Nirmala Sitharaman:
Tariff turmoil was not a matter which influenced GST reforms
Have been working at it for 1.5 years
GST has nothing to do with tariffs
GST Council Meeting Live: Revenue Implication Dynamic
Revenue Secretary Arvind Shrivastava:
Revenue implication is a dynamic number, depends on the response
Expect positive change in consumer behaviour; buoyancy and compliance to increase
GST Council Meeting Live: On States' Revenue Shortfall
FM Nirmala Sitharaman:
Anything gained or lost is for everybody
Centre, states to lose or gain together
There will be shortfall both for Centre and States
Nobody is a donor, nobody is a donee within the GST Council
GST Council Meeting Live: Footwear Levy Depends On Rs 2,500 Margin
All footwear priced at less than Rs 2,500 will now be subject to a 5% GST rate, while those above this price will be taxed at 18%.
GST Council Meeting Live: Reforms To Benefit Common Man, Says PM Modi
"Glad to state that the GST Council, comprising the Union and the States, has collectively agreed to the proposals submitted by the Union Government on GST rate cuts & reforms, which will benefit the common man, farmers, MSMEs, middle-class, women and youth," said PM Modi in a post on X.
GST Council Meeting Live: Expect Compliance To Increase
Revenue Secretary Arvind Shrivastava:
Possible revenue loss estimated due to rate cuts at Rs 48,000 crore
Rate rationalisation to result in buoyancy effect
Expect buoyancy to play major role
Positive effect on consumer behaviour expected
We also expect compliance to increase with this exercise
GST Council Meeting Live: Caffeinated Beverages At 40%
Aerated waters containing added sugar or flavour, caffeinated beverages, non-alcoholic beverages are all to be taxed at 40%.
GST Council Meeting Live: Sin & Luxury Goods At 40%
Special rate for sin and super luxury goods at 40% for pan masala, cigarettes, gutka, chewing tobacco.
GST Council Meeting Live:Â Fertiliser Sector Inverted Duty Corrected
Sulphuric acid, nitric, ammonia come down to 5%.
GST Council Meeting Live: Insurance Services To Go Down
Insurance services go down from 18%
Exemption to all individual life insurance policies -- term, ULIP
Exemption to all individual health insurance policies including family floater and senior citizens
GST Council Meeting Live: Buses, Trucks Now Taxed At 18%
The GST rate on buses, trucks, and three-wheelers is brought down from 28% to 18%, while also implementing a uniform 18% GST on all auto parts.
GST Council Meeting Live:Â Cancer Medication Exempt
While the GST on cancer medicines and medication for rare diseases came down from 5% to nil, blood glucose monitoring systems are taxed at 5% rate.
GST Council Meeting Live:Â Taxes Removed On 33 Drugs
The Council approved the removal of GST on 33 life-saving drugs from 12%.
GST Council Meeting Live: Marble, Granite, Leather Down To 5%
The GST Council has reduced GST rate from 12% to 5% on natural menthol, handicrafts, and products from labor-intensive sectors such as marble and granite blocks and intermediate leather goods.
GST Council Meeting Live: 'Aspirational Items' Now More Within Reach
The GST rate is set to be slashed from 28% to 18% on a range of aspirational items. This includes ACs, all large-screen TVs/TVs over 32 inches, and dishwashers. The proposal also extends to small cars and bikes with an engine capacity of less than 350cc.
GST Council Meeting Live: GST On Pasta, Namkeens Reduced To 5% To Nil
The GST on Namkeen, Pasta, Sauces, Bhujia, Instant noodles, Cornflakes and Preserved meet has been reduced to 5% or nil.
GST Council Meeting Live: Household Items To Be Taxed At 5%
The GST on UHT milk, Chhenna paneer and all indian breads like roti and parantha has been reduced to nil.
GST Council Meeting Live: From Hair Oil To Toothbrushes, GST Reduced To 5%
The GST on Hair oil, Shampoo, Toothbrush, Cycles, Tablewear and Kitchenware the GST has been reduced from the earlier 18% and 12% to 5%.
GST Council Meeting Live: Reforms Carried Out With Focus On Common Man
Reforms have been carried out with focus on common man, said Finance Minister Nirmala Sitharaman. She further added that every tax levied on daily use have gone through rigorous review and in most cases, rates have come down.
GST Council Meeting Live: Tax Slabs Reduced To Two
The tax slabs have now been cut to two. "This reform is not just on rationalising rates, it's also on ease of living and structural reform," the Finance Minister said during the briefing.
GST Council Meeting Live: Meeting Wrapped Up In One Day
While we wait for the press conference sources have told NDTV Profit that the meeting has been wrapped up in one day and will not convene tomorrow.
GST Council Meeting Live: Total Revenue Loss On Reduction In Tax Rates Pegged At Rs 48,000 Crore
The total revenue loss on account of the reduction in tax rates is pegged at around Rs 48,000 crore annually, the persons said.
GST Council Meeting Live: New Tax Rates To Apply From Sept 22
At the high-stake meeting of the GST Council on Wednesday, a consensus was reached on all proposals, including the restructuring of tax slabs from four at present to only two — 5% and 18%, NDTV Profit has learnt.
The new tax rates will come into effect from Sept. 22, the persons privy to the development said.
Read the full story here.
GST Council Approves All Proposal By Centre
The GST Council meeting has concluded with a media briefing expected at 10.00 pm at National Media Centre, New Delhi.
The council in its meeting has approved all the proposals by the centre. Stay tuned for more updates as the press briefing begins shortly.