GST reforms 2025 will benefit THESE sectors: Check details
GST reforms 2025: The central government has revamped the Goods and Services Tax (GST) structure by eliminating the 12 per cent and 28 per cent GST slabs. Most of the items in these slabs will be moved into the 5 per cent and 18 per cent slabs.
Nirmala Sitharaman announcing GST reforms
GST reforms: The new rates will be applied on September 22, the first day of Navratri. According to experts, sectors like insurance, consumer durables, building materials, automobiles, retail, cement, FMCG, and real estate will benefit from the move.
Cement, auto, and electronics
Cement products will become cheaper. TVs and air conditioners have also been moved from the 28 per cent slab to the 18 per cent slab. Small cars will now attract only 18 per cent GST, which will boost car sales. EVs will attract only five per cent GST.
Real Estate
Real Estate is another sector that is expected to do well. This is because the GST on construction material, including cement, has been lowered. This will make constructing houses and buildings cheaper.
NBFCs
With higher disposable income, non-banking financial companies may benefit as the demand for goods and services will rise, which could also boost credit demand.
FMCG
The new GST structure has three slabs -- 5 per cent, 18 per cent, and 40 per cent. Many FMCG products like hair oil, soaps, toothpaste, bicycles, kitchenware, and packaged foods are moved to the 5 per cent slab, making them cheaper. Several items like paneer, paratha, roti, and milk are now tax-free. Hence, this sector will benefit from the decision.
Insurance sector
Life and health insurance have been made GST-free. This will provide a direct benefit to the masses as these insurances are likely to become cheaper.
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