In 2017, India embarked on a transformative journey with the introduction of the Goods and Services Tax (GST), a unified tax system aimed at simplifying the country's complex tax structure. 

PM Modi speech: Top 7 taxes erased forever by GST

India's Goods and Services Tax (GST) reforms are expected to offset the Trump tariffs at least partially, but it depends on a number of factors. The GST reforms consolidated tax slabs and cut rates on hundreds of items, from cars and electronics to soaps and insurance premiums. The aim is to boost domestic consumption, improve tax collection, and create an investment-friendly business environment. The reforms came days after the 50 per cent tariffs imposed by US President Donald Trump over the trade gap and India's oil purchases from Russia. The tariffs could impact India's textiles, auto parts, and industrial machinery sectors, among others. This could hurt India's export competitiveness in the US, which is its largest trading partner.<h2>What did India's GST reforms do to the taxpayer?</h2>India's ‘GST 2.0’ reforms simplified it to two main slabs of 5 per cent and 18 per cent, while a 40 per cent slab was introduced for luxury/sin goods such as premium cars and tobacco products.Tax rate for consumer durables was cut from 28 per cent to 18 per cent, and for processed foods from 12 per cent to 5 per cent, besides signficant reductions for textiles-linked products.The GDP boost is estimated from 0.6 per cent to 1.2 per cent, as per analysts.It would simplify tax filing for medium and small enterprises (MSMEs), enable faster refunds and improve ease of doing business.GST cuts also could ease inflation, which is already at an eight-year low.<a href="https://www.wionews.com/india-news/gst-reforms-2025-rate-cuts-5-per-cent-slab-middle-class-relief-1756971115143">Also read: GST rate cuts on common goods: Relief for middle class, push for festive demand</a><h2>How India's exports sectors are affected by Trump tariffs</h2>India is estimated to have saved $17 billion by importing discounted Russian oil. The exports to US in 2024 were around $87 billion or around 2.5 per cent of India’s GDP. Up to 66 per cent of these exports are at risk of Trump tariff impact, with estimated loss ranging from 4 billion to 37 billion dollars depending on the value of the lost exports. Textiles could take a hit of $10.3 billion, Gems &amp; Jewellery could be hurt by $10 billion, while auto components, shrimp, chemicals and leather are some other areas that can be affected. Job losses are estimated at over 1 million, particularly in textiles, gems, machinery and fisheries sectors. GDP loss could range from 0.1 per cent to 1 per cent, according to analysts from HSBC, Nomura, Nirmal Bank, Cleartax and others.<a href="https://www.wionews.com/videos/new-gst-reform-what-gets-cheaper-and-what-becomes-costlier-under-new-slabs-1757046365613/embed">https://www.wionews.com/videos/new-gst-reform-what-gets-cheaper-and-what-becomes-costlier-under-new-slabs-1757046365613/embed</a><h2>How India is seeing GST reform amid Trump tariffs</h2>Commerce Minister Piyush Goyal hailed the GST reforms as “game-changing” and hinted that they could partially shield India from global trade disruptions—an indirect reference to the Trump tariffs. National Stock Exchange CEO Ashishkumar Chauhan and Kotak Mahindra’s Nilesh Shah expressed hope that the simplified tax regime would attract investment and spur growth.<a href="https://www.wionews.com/photos/will-flight-tickets-be-cheaper-in-new-gst-slab-quick-overview-before-your-next-vacation-1756994610769">Also read: Will flight tickets be cheaper in new GST slab? Quick overview before your next vacation</a>State Bank of India noted that GST cuts and other recent income tax reliefs might inject some ₹5.31 trillion into the economy, roughly 1.6 per cent of India’s GDP. This is significant, as the impact from Trump tariffs on GDP was estimated at around 1 per cent.Analysts such as Fitch Solutions projected GDP growth of 5.8 per cent in the financial year 2025–26 and 5.4 per cent in 2026–27 if domestic reforms continue and global trade conditions don’t worsen. Elara Capital and Geojit Financial Services estimated that increased consumption resulting from the GST reforms could lift GDP growth by up to 1.2 percentage points over the next 4 to 6 quarters.A Moneycontrol portal survey found that 67 per cent of economists believe GST reforms and tax cuts will at least partially offset the damage from Trump tariffs.<h2>GST reforms vs Trump tariffs: It is more complicated&nbsp;</h2>Some experts, however, cautioned against overestimating the tax reform's capacity to offset the Trump tariffs. Even if consumption rises, export sectors directly hit by tariffs—such as apparel, auto parts, and engineering goods—rely heavily on international markets and could take years to recover from lost US revenue.Economist Gaura Sen Gupta from IDFC First Bank estimated that GST-related growth gains will add 0.6 percentage points to GDP, but persistent tariffs at 50 per cent could neutralise these benefits.It all depends on if Trump tightens his tariff stance. Trump has already hinted at a second and third phase of sanctions or tariffs on buyers of Russian oil, which could also affect India. Therefore, the future effectiveness of India's tax reforms in offsetting the Trump tariffs depends on whether Trump hardens or softens his stance. If tariffs ease to 25 per cent or below by the end of the year, India may still meet its growth targets, according to experts.<h2>The government is taking a hit with GST, income tax reforms</h2>After GST reforms, along with some $12 billion in income tax relief announced earlier this year, the exchequer will take a hit of $20 billion per year due to the reforms, according to analysts.&nbsp;Reduction of GST rates could impact public finances, particularly the tax collection of state governments that rely on GST for their budgets. There is a risk of underfunding crucial infrastructure and social programmes due to reduced revenue.<h2>GST reforms vs Trump tariffs: A buffer, not a cure</h2>Many economists and industry observers feel the GST reforms, while long overdue, are a strategic response to external pressures. They will have only a limited impact in the long run, as they are not a full substitute for losses from US-bound exports. The future will depend on how long the Trump tariffs remain, how the global trade environment evolves, and whether India can diversify its export markets quickly enough.The general consensus is that GST reforms are a strong buffer, but not a cure for the current pressures on the Indian economy due to tariffs. More diplomatic engagement and export diversification are required to fully safeguard the Indian economy.As mentioned earlier, the &nbsp;GDP impact of US tariffs is between 0.2% to –1%, while the GST reform would benefit it by an estimated 0.6%.But it will take time. It should be noted that GST reforms take time to impact the economy, while tariffs are immediate. Then there is sectoral mismatch: The reforms support domestic demand, but not all the export-heavy sectors. If US tariffs are imposed in the 'second or third phases' on IT services, or non-tariff barriers like visa restrictions, it could hit India again. It could add to urban unemployment, which is already at 7.1 per cent in some cities.In short, tariffs have an immediate, export-driven negative impact, &nbsp;causing a potential GDP loss of up to 1 per cent and taking a hit of over $30 billion in trade. GST reforms can be a partial yet significant mitigation by boosting internal demand, and adding up to 0.6 per cent to GDP. &nbsp;

India’s GST reforms could partially offset Trump’s tariffs by boosting consumption and easing taxes but they won’t fully counteract tariff impacts on exports, according to expert views

India's Goods and Services Tax (GST) reforms are expected to offset the Trump tariffs at least partially, but it depends on a number of factors. The GST reforms consolidated tax slabs and cut rates on hundreds of items, from cars and electronics to soaps and insurance premiums. The aim is to boost domestic consumption, improve tax collection, and create an investment-friendly business environment. The reforms came days after the 50 per cent tariffs imposed by US President Donald Trump over the trade gap and India's oil purchases from Russia. The tariffs could impact India's textiles, auto parts, and industrial machinery sectors, among others. This could hurt India's export competitiveness in the US, which is its largest trading partner. What did India's GST reforms do to the taxpayer? India's ‘GST 2.0’ reforms simplified it to two main slabs of 5 per cent and 18 per cent, while a 40 per cent slab was introduced for luxury/sin goods such as premium cars and tobacco products. Tax rate for consumer durables was cut from 28 per cent to 18 per cent, and for processed foods from 12 per cent to 5 per cent, besides signficant reductions for textiles-linked products. The GDP boost is estimated from 0.6 per cent to 1.2 per cent, as per analysts. It would simplify tax filing for medium and small enterprises (MSMEs), enable faster refunds and improve ease of doing business. GST cuts also could ease inflation, which is already at an eight-year low. Also read: GST rate cuts on common goods: Relief for middle class, push for festive demand How India's exports sectors are affected by Trump tariffs India is estimated to have saved $17 billion by importing discounted Russian oil. The exports to US in 2024 were around $87 billion or around 2.5 per cent of India’s GDP. Up to 66 per cent of these exports are at risk of Trump tariff impact, with estimated loss ranging from 4 billion to 37 billion dollars depending on the value of the lost exports. Textiles could take a hit of $10.3 billion, Gems & Jewellery could be hurt by $10 billion, while auto components, shrimp, chemicals and leather are some other areas that can be affected. Job losses are estimated at over 1 million, particularly in textiles, gems, machinery and fisheries sectors. GDP loss could range from 0.1 per cent to 1 per cent, according to analysts from HSBC, Nomura, Nirmal Bank, Cleartax and others. https://www.wionews.com/videos/new-gst-reform-what-gets-cheaper-and-what-becomes-costlier-under-new-slabs-1757046365613/embed How India is seeing GST reform amid Trump tariffs Commerce Minister Piyush Goyal hailed the GST reforms as “game-changing” and hinted that they could partially shield India from global trade disruptions—an indirect reference to the Trump tariffs. National Stock Exchange CEO Ashishkumar Chauhan and Kotak Mahindra’s Nilesh Shah expressed hope that the simplified tax regime would attract investment and spur growth. Also read: Will flight tickets be cheaper in new GST slab? Quick overview before your next vacation State Bank of India noted that GST cuts and other recent income tax reliefs might inject some ₹5.31 trillion into the economy, roughly 1.6 per cent of India’s GDP. This is significant, as the impact from Trump tariffs on GDP was estimated at around 1 per cent. Analysts such as Fitch Solutions projected GDP growth of 5.8 per cent in the financial year 2025–26 and 5.4 per cent in 2026–27 if domestic reforms continue and global trade conditions don’t worsen. Elara Capital and Geojit Financial Services estimated that increased consumption resulting from the GST reforms could lift GDP growth by up to 1.2 percentage points over the next 4 to 6 quarters. A Moneycontrol portal survey found that 67 per cent of economists believe GST reforms and tax cuts will at least partially offset the damage from Trump tariffs. GST reforms vs Trump tariffs: It is more complicated Some experts, however, cautioned against overestimating the tax reform's capacity to offset the Trump tariffs. Even if consumption rises, export sectors directly hit by tariffs—such as apparel, auto parts, and engineering goods—rely heavily on international markets and could take years to recover from lost US revenue. Economist Gaura Sen Gupta from IDFC First Bank estimated that GST-related growth gains will add 0.6 percentage points to GDP, but persistent tariffs at 50 per cent could neutralise these benefits. It all depends on if Trump tightens his tariff stance. Trump has already hinted at a second and third phase of sanctions or tariffs on buyers of Russian oil, which could also affect India. Therefore, the future effectiveness of India's tax reforms in offsetting the Trump tariffs depends on whether Trump hardens or softens his stance. If tariffs ease to 25 per cent or below by the end of the year, India may still meet its growth targets, according to experts. The government is taking a hit with GST, income tax reforms After GST reforms, along with some $12 billion in income tax relief announced earlier this year, the exchequer will take a hit of $20 billion per year due to the reforms, according to analysts. Reduction of GST rates could impact public finances, particularly the tax collection of state governments that rely on GST for their budgets. There is a risk of underfunding crucial infrastructure and social programmes due to reduced revenue. GST reforms vs Trump tariffs: A buffer, not a cure Many economists and industry observers feel the GST reforms, while long overdue, are a strategic response to external pressures. They will have only a limited impact in the long run, as they are not a full substitute for losses from US-bound exports. The future will depend on how long the Trump tariffs remain, how the global trade environment evolves, and whether India can diversify its export markets quickly enough. The general consensus is that GST reforms are a strong buffer, but not a cure for the current pressures on the Indian economy due to tariffs. More diplomatic engagement and export diversification are required to fully safeguard the Indian economy. As mentioned earlier, the GDP impact of US tariffs is between 0.2% to –1%, while the GST reform would benefit it by an estimated 0.6%. But it will take time. It should be noted that GST reforms take time to impact the economy, while tariffs are immediate. Then there is sectoral mismatch: The reforms support domestic demand, but not all the export-heavy sectors. If US tariffs are imposed in the 'second or third phases' on IT services, or non-tariff barriers like visa restrictions, it could hit India again. It could add to urban unemployment, which is already at 7.1 per cent in some cities. In short, tariffs have an immediate, export-driven negative impact, causing a potential GDP loss of up to 1 per cent and taking a hit of over $30 billion in trade. GST reforms can be a partial yet significant mitigation by boosting internal demand, and adding up to 0.6 per cent to GDP.

India’s GST reforms could partially offset Trump’s tariffs by boosting consumption and easing taxes but they won’t fully counteract tariff impacts on exports, according to expert views

India GST reforms can offset Trump tariffs, but only under these conditions

India may be gearing up for its biggest reset of the Goods and Services Tax (GST) regime since it was introduced in 2017. In his Independence Day speech on Friday, Prime Minister Narendra Modi promised “next-generation GST reforms”, which he hinted could be rolled out before Diwali 2025. According to reports, the reforms could simplify the tax structure, reduce levies on common goods and services, and ease the burden on households and small businesses. Here are the speculations of what will get cheaper.&nbsp;<h2>What is being planned?</h2>The Centre has reportedly forwarded a three-pillar blueprint for GST reforms to the Group of Ministers (GoM), which will place its recommendations before the GST Council chaired by Union Finance Minister Nirmala Sitharaman. If adopted, the plan could scrap the 12 per cent GST slab entirely and restructure the regime into just three slabs that is 5 per cent, 18 per cent, and 40 per cent (for sin goods like cigarettes and beer).&nbsp;“This Diwali, I am going to make it a double Diwali for you. This Diwali, you fellow countrymen will get a tremendous gift,” Modi said, signalling tax relief ahead of the festive season.<h2>What could become cheaper?</h2><ul><li>Everyday essentials such as groceries, soaps, medicines, and packaged foods</li><li>Bicycles, agricultural equipment, and tractors – with tax rates potentially dropping to 5 per cent</li><li>Consumer durables like TVs, washing machines, and air conditioners – currently taxed at 28 per cent, could fall under the 18 per cent bracket</li><li>Insurance and education services – sectors flagged by brokerages like Jefferies and Nomura as likely beneficiaries</li><li>Items taxed at 12 per cent, including jam, pasta, frozen vegetables, umbrellas, carpets, footwear under ₹1,000, and feeding bottles, may see rates slashed to 5 per cent, giving households direct relief.</li></ul><h2>Why the change now?</h2>The current GST system has four main slabs, that is 5 per cent, 12 per cent, 18 per cent, and 28 per cent, and has long faced criticism for its complexity. Industry bodies have pushed for a simpler regime with fewer slabs and lower rates on essentials.&nbsp;Reports suggest the government aims to boost consumption ahead of the festive season, while also balancing inflation concerns.<h2>The economic impact</h2>Brokerage firm Citi estimates that moving most 12 per cent slab items into the 5 per cent basket could lead to a revenue loss of up to 0.15 per cent of GDP, but would also provide a policy stimulus worth around 0.7 per cent of GDP in FY26.&nbsp;Experts say rationalisation will need to strike a balance between affordability for consumers, inflation control, and revenue neutrality for the government.<h2>What stays expensive?</h2>Not everything will get cheaper. Goods classified as luxury or harmful, such as cigarettes, pan masala, and alcohol, are expected to remain under a higher 40 per cent GST slab. Automobiles and luxury durables could also continue attracting higher taxes.&nbsp;If implemented as indicated, these reforms could be India’s biggest tax reset since GST’s rollout in 2017. They could simplify compliance, reduce costs for households, and spur demand across key sectors, from farming and consumer durables to insurance.&nbsp;However, the proposals are still under discussion, and the final decision lies with the GST Council, which will weigh fiscal risks against the political and economic push for tax relief.&nbsp;For now, the big question remains: Will Diwali 2025 really bring Modi’s promised “double Diwali” for Indian consumers?&nbsp;(With inputs from the agencies)

A proposed blueprint aims to simplify the tax structure, reducing rates on essentials. Potential shifts include abolishing the 12% slab, creating three slabs: 5%, 18%, and 40% for sin goods. Costs for groceries, bicycles, and consumer durables may drop.

India may be gearing up for its biggest reset of the Goods and Services Tax (GST) regime since it was introduced in 2017. In his Independence Day speech on Friday, Prime Minister Narendra Modi promised “next-generation GST reforms”, which he hinted could be rolled out before Diwali 2025. According to reports, the reforms could simplify the tax structure, reduce levies on common goods and services, and ease the burden on households and small businesses. Here are the speculations of what will get cheaper. What is being planned? The Centre has reportedly forwarded a three-pillar blueprint for GST reforms to the Group of Ministers (GoM), which will place its recommendations before the GST Council chaired by Union Finance Minister Nirmala Sitharaman. If adopted, the plan could scrap the 12 per cent GST slab entirely and restructure the regime into just three slabs that is 5 per cent, 18 per cent, and 40 per cent (for sin goods like cigarettes and beer). “This Diwali, I am going to make it a double Diwali for you. This Diwali, you fellow countrymen will get a tremendous gift,” Modi said, signalling tax relief ahead of the festive season. What could become cheaper? Everyday essentials such as groceries, soaps, medicines, and packaged foods Bicycles, agricultural equipment, and tractors – with tax rates potentially dropping to 5 per cent Consumer durables like TVs, washing machines, and air conditioners – currently taxed at 28 per cent, could fall under the 18 per cent bracket Insurance and education services – sectors flagged by brokerages like Jefferies and Nomura as likely beneficiaries Items taxed at 12 per cent, including jam, pasta, frozen vegetables, umbrellas, carpets, footwear under ₹1,000, and feeding bottles, may see rates slashed to 5 per cent, giving households direct relief. Why the change now? The current GST system has four main slabs, that is 5 per cent, 12 per cent, 18 per cent, and 28 per cent, and has long faced criticism for its complexity. Industry bodies have pushed for a simpler regime with fewer slabs and lower rates on essentials. Reports suggest the government aims to boost consumption ahead of the festive season, while also balancing inflation concerns. The economic impact Brokerage firm Citi estimates that moving most 12 per cent slab items into the 5 per cent basket could lead to a revenue loss of up to 0.15 per cent of GDP, but would also provide a policy stimulus worth around 0.7 per cent of GDP in FY26. Experts say rationalisation will need to strike a balance between affordability for consumers, inflation control, and revenue neutrality for the government. What stays expensive? Not everything will get cheaper. Goods classified as luxury or harmful, such as cigarettes, pan masala, and alcohol, are expected to remain under a higher 40 per cent GST slab. Automobiles and luxury durables could also continue attracting higher taxes. If implemented as indicated, these reforms could be India’s biggest tax reset since GST’s rollout in 2017. They could simplify compliance, reduce costs for households, and spur demand across key sectors, from farming and consumer durables to insurance. However, the proposals are still under discussion, and the final decision lies with the GST Council, which will weigh fiscal risks against the political and economic push for tax relief. For now, the big question remains: Will Diwali 2025 really bring Modi’s promised “double Diwali” for Indian consumers? (With inputs from the agencies)

India is poised for significant Goods and Services Tax (GST) reforms, with Prime Minister Narendra Modi hinting at changes before Diwali 2025.

GST reset ahead of Diwali? Here’s what may become cheaper

New Delhi
The 55th Goods and Services Tax (GST) council meeting has sparked a major discussion around changes proposed by Finance Minister Nirmala Sitharaman. Let's take a closer look at the announcements made.
Key points
What's cheaper now?
- fortified rice kernels
- gene therapy
- food preparations for free distribution
- systems for long range surface-to-air missile assembly
- inspection equipment for atomic energy
- pepper &amp; raisins supplied by agriculturists

what's expensive now?
- old &amp; used vehicle (including EVs)
- ready-to-eat popcorn
- autoclaved aerated concrete blocks
- sponsorship services by corporates
- penalty-only appeals

Popcorns
For people who like to eat caramel popcorn, the meeting came with a relatively bitter plan. The caramelised popcorn (mixed with sugar) will now attract an 18 per cent GST. Meanwhile, pre-packed and ready-to-eat popcorn will attract a 12 per cent GST. The council has notified that the Central Board of Indirect Taxes and Customs (CBIC) will provide further clarity on the current taxation rules for Popcorn. Under the current system, ready-to-eat popcorn will attract a 5 per cent GST if not pre-packaged or labelled. When mixed with sugar to make caramel popcorn, the rate jumps to 18 per cent.
Health Insurance
While no final statement has been made, a Group of Ministers (GOM) set up by the council suggested exempting insurance premiums paid for term life insurance policies from GST. Health insurance premiums paid by senior citizens could be exempted or face a reduced rate. The Finance Minister announced more contemplation over the same.
Automotives &amp; EVs
The government has announced a focus on promoting Electric Vehicles by imposing a 5 per cent tax on new EVs. The 18 per cent tax will be levied when a company purchases a used EV or when a seller modifies a used EV but no indirect tax. This 18 per cent GST will also apply to the margin value between the purchase price and the selling price of a used car. This marks a 6 per cent increase from previous rules.
Meanwhile, the council also decided to increase the GST rate on small petrol and diesel cars from 12 per cent to 18 per cent.
Adjustments on luxury &amp; essential goods
The council has decided to increase GST rates on luxury items such as high-end wristwatches and shoes. The change is projected to generate an additional Rs 22,000 crore annually. Meanwhile, the council has lowered GST rates on essential goods, including bicycles and large packs of packaged drinking water. This move aims to reduce household expenses.
Aviation Fuel
According to Sitharaman, state governments rejected the proposal to include aviation turbine fuel within GST framework. She said, "States did not feel comfortable. They didn't want the ATF because they say it as part of the crude petroleum diesel basket, and therefore they said that it alone cannot be taken out, and therefore that continues to remain where it is today".
Construction and agricultural goods
ACC blocks containing 50 per cent fly ash will attract a GST rate of 12 per cent. Additionally, black pepper and raisins are exempt from GST.
Also read: <a href="https://www.wionews.com/business-economy/money-wise-planning-to-become-a-sip-expert-here-are-some-golden-rules-to-reap-profits-785260">Money-Wise: Planning to become a SIP expert? Here are some golden rules to reap profits</a>

The 55th Goods and Services Tax (GST) council meeting has sparked a major discussion around changes proposed by Finance Minister Nirmala Sitharaman.



New Delhi The 55th Goods and Services Tax (GST) council meeting has sparked a major discussion around changes proposed by Finance Minister Nirmala Sitharaman. Let's take a closer look at the announcements made. Key points What's cheaper now? - fortified rice kernels - gene therapy - food preparations for free distribution - systems for long range surface-to-air missile assembly - inspection equipment for atomic energy - pepper & raisins supplied by agriculturists what's expensive now? - old & used vehicle (including EVs) - ready-to-eat popcorn - autoclaved aerated concrete blocks - sponsorship services by corporates - penalty-only appeals Popcorns For people who like to eat caramel popcorn, the meeting came with a relatively bitter plan. The caramelised popcorn (mixed with sugar) will now attract an 18 per cent GST. Meanwhile, pre-packed and ready-to-eat popcorn will attract a 12 per cent GST. The council has notified that the Central Board of Indirect Taxes and Customs (CBIC) will provide further clarity on the current taxation rules for Popcorn. Under the current system, ready-to-eat popcorn will attract a 5 per cent GST if not pre-packaged or labelled. When mixed with sugar to make caramel popcorn, the rate jumps to 18 per cent. Health Insurance While no final statement has been made, a Group of Ministers (GOM) set up by the council suggested exempting insurance premiums paid for term life insurance policies from GST. Health insurance premiums paid by senior citizens could be exempted or face a reduced rate. The Finance Minister announced more contemplation over the same. Automotives & EVs The government has announced a focus on promoting Electric Vehicles by imposing a 5 per cent tax on new EVs. The 18 per cent tax will be levied when a company purchases a used EV or when a seller modifies a used EV but no indirect tax. This 18 per cent GST will also apply to the margin value between the purchase price and the selling price of a used car. This marks a 6 per cent increase from previous rules. Meanwhile, the council also decided to increase the GST rate on small petrol and diesel cars from 12 per cent to 18 per cent. Adjustments on luxury & essential goods The council has decided to increase GST rates on luxury items such as high-end wristwatches and shoes. The change is projected to generate an additional Rs 22,000 crore annually. Meanwhile, the council has lowered GST rates on essential goods, including bicycles and large packs of packaged drinking water. This move aims to reduce household expenses. Aviation Fuel According to Sitharaman, state governments rejected the proposal to include aviation turbine fuel within GST framework. She said, "States did not feel comfortable. They didn't want the ATF because they say it as part of the crude petroleum diesel basket, and therefore they said that it alone cannot be taken out, and therefore that continues to remain where it is today". Construction and agricultural goods ACC blocks containing 50 per cent fly ash will attract a GST rate of 12 per cent. Additionally, black pepper and raisins are exempt from GST. Also read: Money-Wise: Planning to become a SIP expert? Here are some golden rules to reap profits

55th GST council meeting: key discussion points

The 55th Goods and Services Tax (GST) council meeting has sparked a major discussion around changes proposed by Finance Minister Nirmala Sitharaman. Let's take a closer look at the announcements made.

Key points

What's cheaper now?

- fortified rice kernels

- gene therapy

- food preparations for free distribution

- systems for long range surface-to-air missile assembly

- inspection equipment for atomic energy

- pepper &amp; raisins supplied by agriculturists

&nbsp;

what's expensive now?

- old &amp; used vehicle (including EVs)

- ready-to-eat popcorn

- autoclaved aerated concrete blocks

- sponsorship services by corporates

- penalty-only appeals

&nbsp;

Popcorns

For people who like to eat caramel popcorn, the meeting came with a relatively bitter plan. The caramelised popcorn&nbsp;(mixed with sugar) will now attract an 18 per cent GST. Meanwhile, pre-packed and ready-to-eat popcorn will attract a 12 per cent GST. The council has notified that the Central Board of Indirect&nbsp;Taxes and Customs (CBIC) will provide further clarity on the current taxation rules for Popcorn. Under the current system, ready-to-eat popcorn will attract a 5 per cent GST if not pre-packaged or labelled. When mixed with sugar to make caramel popcorn, the rate jumps to 18 per cent.

Health Insurance

While no final statement has been made, a Group of Ministers (GOM) set up by the council suggested exempting insurance premiums paid for term life insurance policies from GST. Health insurance premiums paid by senior citizens could be exempted or face a reduced rate. The Finance Minister announced more contemplation over the same.

Automotives &amp; EVs

The government has announced a focus on promoting Electric Vehicles by imposing a 5 per cent tax on new EVs. The 18 per cent tax will be levied when a company purchases a used EV or when a seller&nbsp;modifies a used EV but no indirect tax. This 18 per cent GST will also apply to the margin value between the purchase price and the selling price of a used car. This marks a 6 per cent increase from previous rules.

Meanwhile, the council also decided to increase the GST rate on small petrol and diesel cars from 12 per cent to 18 per cent.

Adjustments on luxury &amp; essential goods

The council has decided to increase GST rates on luxury items such as high-end wristwatches and shoes. The change is projected to generate an additional Rs 22,000 crore&nbsp;annually. Meanwhile,&nbsp;the council has lowered GST rates on essential goods, including bicycles and large packs of packaged drinking water. This move aims to reduce household expenses.

Aviation Fuel

According to Sitharaman, state governments rejected the proposal to include aviation turbine fuel within GST framework. She said, "States did not feel comfortable. They didn't want the ATF because they say it as part of the crude petroleum diesel basket, and therefore they said that it alone cannot be taken out, and therefore that continues to remain where it is today".

Construction and agricultural&nbsp;goods

ACC blocks containing 50 per cent fly ash will attract a GST rate of 12 per cent. Additionally, black pepper and raisins are exempt from GST.

Also read:&nbsp;<a href="https://www.wionews.com/business-economy/money-wise-planning-to-become-a-sip-expert-here-are-some-golden-rules-to-reap-profits-785260">Money-Wise: Planning to become a SIP expert? Here are some golden rules to reap profits</a>

The 55th Goods and Services Tax (GST) council meeting has sparked a major discussion around changes proposed by Finance Minister Nirmala Sitharaman. Let's take a closer look at the announcements made.

The 55th Goods and Services Tax (GST) council meeting has sparked a major discussion around changes proposed by Finance Minister Nirmala Sitharaman. Let's take a closer look at the announcements made. Key points What's cheaper now? - fortified rice kernels - gene therapy - food preparations for free distribution - systems for long range surface-to-air missile assembly - inspection equipment for atomic energy - pepper & raisins supplied by agriculturists what's expensive now? - old & used vehicle (including EVs) - ready-to-eat popcorn - autoclaved aerated concrete blocks - sponsorship services by corporates - penalty-only appeals Popcorns For people who like to eat caramel popcorn, the meeting came with a relatively bitter plan. The caramelised popcorn (mixed with sugar) will now attract an 18 per cent GST. Meanwhile, pre-packed and ready-to-eat popcorn will attract a 12 per cent GST. The council has notified that the Central Board of Indirect Taxes and Customs (CBIC) will provide further clarity on the current taxation rules for Popcorn. Under the current system, ready-to-eat popcorn will attract a 5 per cent GST if not pre-packaged or labelled. When mixed with sugar to make caramel popcorn, the rate jumps to 18 per cent. Health Insurance While no final statement has been made, a Group of Ministers (GOM) set up by the council suggested exempting insurance premiums paid for term life insurance policies from GST. Health insurance premiums paid by senior citizens could be exempted or face a reduced rate. The Finance Minister announced more contemplation over the same. Automotives & EVs The government has announced a focus on promoting Electric Vehicles by imposing a 5 per cent tax on new EVs. The 18 per cent tax will be levied when a company purchases a used EV or when a seller modifies a used EV but no indirect tax. This 18 per cent GST will also apply to the margin value between the purchase price and the selling price of a used car. This marks a 6 per cent increase from previous rules. Meanwhile, the council also decided to increase the GST rate on small petrol and diesel cars from 12 per cent to 18 per cent. Adjustments on luxury & essential goods The council has decided to increase GST rates on luxury items such as high-end wristwatches and shoes. The change is projected to generate an additional Rs 22,000 crore annually. Meanwhile, the council has lowered GST rates on essential goods, including bicycles and large packs of packaged drinking water. This move aims to reduce household expenses. Aviation Fuel According to Sitharaman, state governments rejected the proposal to include aviation turbine fuel within GST framework. She said, "States did not feel comfortable. They didn't want the ATF because they say it as part of the crude petroleum diesel basket, and therefore they said that it alone cannot be taken out, and therefore that continues to remain where it is today". Construction and agricultural goods ACC blocks containing 50 per cent fly ash will attract a GST rate of 12 per cent. Additionally, black pepper and raisins are exempt from GST. Also read: Money-Wise: Planning to become a SIP expert? Here are some golden rules to reap profits

With the Union Budget 2024 all set to be presented, experts are pitching for scrapping or slashing the existing 18 per cent Goods and Services Tax on mental health services. They opined that strategic spending is a must for creating a society resilient in its psyche as part of India's framework.

"Mental health issues are highly prevalent, yet are poorly managed and are affecting a significant number of our population. In the upcoming Budget, we urge the government to remove or reduce the 18 per cent GST on mental health services," Jyoti Kapoor, Founder &amp; Director of Manasthali Wellness, told IANS.

The biggest concern is that mental health has become such an issue it has huge implications for national productivity and economic stability. There is a growing demand for health insurance policies that would cover physical and mental health.

The prohibitive costs of medications and therapies keep many from wanting to report mental health conditions.&nbsp;

Divya Mohindroo, a counselling psychologist, said there is an imminent need for comprehensive policies regarding mental health in India. She further added that the country also needs to increase its workforce in this sector to match the rising demand for services.

"Out of an estimated 150 million people needing mental health services, only fewer than 30 million seek help," Mohindroo told IANS.

"Lack of mental health professionals is crippling in India, with merely 0.3 psychiatrists, 0.07 psychologists, and 0.07 social workers available per 100,000 people," she added.

"There should be specific measures for mental health, and we are hopeful the Budget will prioritise this urgent issue. There is an immediate need to strengthen India's mental health workforce, with just one psychiatrist per two lakh people," Mohindroo said.

She also suggested "scholarships to train professionals to help reduce this gap".

A related key recommendation by experts is that mental health services be brought within the ambit of health insurance coverage. According to experts, this would make care more accessible and affordable for people.

"While government centres receive some relief, private practitioners are left burdened. Extending tax benefits to private practitioners is crucial, given the high operational costs for the average therapist. In addition to acknowledging the financial difficulties experienced by private practitioners, this change would help lower the cost and increase public accessibility to mental health care," Kapoor said.

"This will help our citizens access mental healthcare without burdening them financially," added Mohindroo.

With the Union Budget 2024 all set to be presented, experts are pitching for scrapping or slashing the existing 18 per cent Goods and Services Tax on mental health services.

With the Union Budget 2024 all set to be presented, experts are pitching for scrapping or slashing the existing 18 per cent Goods and Services Tax on mental health services. They opined that strategic spending is a must for creating a society resilient in its psyche as part of India's framework. "Mental health issues are highly prevalent, yet are poorly managed and are affecting a significant number of our population. In the upcoming Budget, we urge the government to remove or reduce the 18 per cent GST on mental health services," Jyoti Kapoor, Founder & Director of Manasthali Wellness, told IANS. The biggest concern is that mental health has become such an issue it has huge implications for national productivity and economic stability. There is a growing demand for health insurance policies that would cover physical and mental health. The prohibitive costs of medications and therapies keep many from wanting to report mental health conditions. Divya Mohindroo, a counselling psychologist, said there is an imminent need for comprehensive policies regarding mental health in India. She further added that the country also needs to increase its workforce in this sector to match the rising demand for services. "Out of an estimated 150 million people needing mental health services, only fewer than 30 million seek help," Mohindroo told IANS. "Lack of mental health professionals is crippling in India, with merely 0.3 psychiatrists, 0.07 psychologists, and 0.07 social workers available per 100,000 people," she added. "There should be specific measures for mental health, and we are hopeful the Budget will prioritise this urgent issue. There is an immediate need to strengthen India's mental health workforce, with just one psychiatrist per two lakh people," Mohindroo said. She also suggested "scholarships to train professionals to help reduce this gap". A related key recommendation by experts is that mental health services be brought within the ambit of health insurance coverage. According to experts, this would make care more accessible and affordable for people. "While government centres receive some relief, private practitioners are left burdened. Extending tax benefits to private practitioners is crucial, given the high operational costs for the average therapist. In addition to acknowledging the financial difficulties experienced by private practitioners, this change would help lower the cost and increase public accessibility to mental health care," Kapoor said. "This will help our citizens access mental healthcare without burdening them financially," added Mohindroo.

Union Budget 2024: Experts call for removal of 18% GST on mental health services

As India prepares for the upcoming budget in July, Re-elected Finance Minister Nirmala Sitharaman chaired the 53rd Goods and Services Tax (GST) Council meeting on Saturday. Rates on many items, including accommodation or students and railway tickets, witnessed exemptions in the latest rules. Similarly, no GST will be levied on intra-railway services. Milk cans and Solar cookers will observe a uniform 12 per cent rate.

The council has recommended rolling out the biometric-based Aadhaar authentication of applicants on a pan-India basis. This is to check fraud tax claims &amp; counter tax evasion.

Sitharaman expressed the intention to include Petrol and Diesel under the GST umbrella while leaving the final decision to states regarding implementation. Interestingly, 5 commodities, including crude oil, natural gas, petrol, diesel, and aviation turbine fuel (ATF), were part of the GST law when it was first implemented in 2017. Later, it was decided to tax it at a later date.

The GST council has also recommended a waiver of interest on tax penalties issued in the first 3 years of GST rollout.

Talking about the potential benefits of this GST revamp, Smita Singh, partner at S&amp;A law offices, said, 'Many welcome recommendations have been announced to provide relief to the taxpayer in the 53rd GST Council Meeting held today. It is evident that the new Government is moving ahead with importance to ease of doing business which includes recommendations like waiver of interest and penalty for Notices issued under Section 73 for FY 2017-18 to FY 2019-20. This benefit can be taken by tax payers accepting demand and willing to pay the contended tax.'

She added, 'Another important decision is that no interest is payable where the amount of &nbsp;tax was deposited in electronic cash ledger of the taxpayer while filing GSTR 3B. This will help taxpayers undergoing potential litigation. Further, the GST Council also recommended to reduce the maximum amount of pre-deposit for filing appeal before the appellate authority from 25 crores to 20 crores.'

As India prepares for the upcoming budget in July, Re-elected Finance Minister Nirmala Sitharaman chaired the 53rd Goods and Services Tax (GST) Council meeting on Saturday.

As India prepares for the upcoming budget in July, Re-elected Finance Minister Nirmala Sitharaman chaired the 53rd Goods and Services Tax (GST) Council meeting on Saturday. Rates on many items, including accommodation or students and railway tickets, witnessed exemptions in the latest rules. Similarly, no GST will be levied on intra-railway services. Milk cans and Solar cookers will observe a uniform 12 per cent rate. The council has recommended rolling out the biometric-based Aadhaar authentication of applicants on a pan-India basis. This is to check fraud tax claims & counter tax evasion. Sitharaman expressed the intention to include Petrol and Diesel under the GST umbrella while leaving the final decision to states regarding implementation. Interestingly, 5 commodities, including crude oil, natural gas, petrol, diesel, and aviation turbine fuel (ATF), were part of the GST law when it was first implemented in 2017. Later, it was decided to tax it at a later date. The GST council has also recommended a waiver of interest on tax penalties issued in the first 3 years of GST rollout. Talking about the potential benefits of this GST revamp, Smita Singh, partner at S&A law offices, said, 'Many welcome recommendations have been announced to provide relief to the taxpayer in the 53rd GST Council Meeting held today. It is evident that the new Government is moving ahead with importance to ease of doing business which includes recommendations like waiver of interest and penalty for Notices issued under Section 73 for FY 2017-18 to FY 2019-20. This benefit can be taken by tax payers accepting demand and willing to pay the contended tax.' She added, 'Another important decision is that no interest is payable where the amount of tax was deposited in electronic cash ledger of the taxpayer while filing GSTR 3B. This will help taxpayers undergoing potential litigation. Further, the GST Council also recommended to reduce the maximum amount of pre-deposit for filing appeal before the appellate authority from 25 crores to 20 crores.'

India's GST Reforms: Nirmala Sitharaman announces rate tweaks and fee waivers

There seems to be some relief for India's online gaming industry. Finance Minister Nirmala Sitharaman said on Wednesday, the taxes will be levied on funds deposited to pay online games.

Big update on India's online gaming sector

The Indian government collected a record 1.87 trillion rupees ($22.88 billion) as gross Goods and Service Tax (GST) revenue for the month of April 2023—the highest since the landmark indirect tax reform was implemented in the country in 2017.

According to the data released by Union Finance Ministry on Monday, the GST collected in April 2023 is up 12 per cent from last year. Compared to last month, the latest GST collections figure is up 16.8 per cent. In April last year, around Rs 1.68 trillion was collected.

Of the 1.87 trillion rupees collected, Rs 38.4 billion came from the central GST (CGST), the state GST contributed Rs. 47 billion, while the Integrated Goods and Services Tax (IGST) accounted for Rs 12 billion, including Rs 9 billion collected on import of goods.

The government has settled&nbsp;Rs 45.8 billion to CGST and Rs. 37.9 billion to SGST from IGST.

The total revenue of the Centre and the states in the month of April 2023 after the regular settlement is Rs. 84.3 billion for CGST and Rs. 85.3 billion for SGST.

“The revenues for the month of April 2023 are 12 per cent higher than the GST revenues in the same month last year,” the ministry said.

April 2023 saw the highest-ever tax collection on a single day on April 20. A sum of Rs 68 billion crore was paid through 9,80,000 transactions on that day. The highest single-day payment last year (on the same date) was Rs 57 billion through 9,60,000 transactions.

The ministry said that the number of e-way bills generated in March 2023 was 90 million, which is 11 per cent higher than the 81 million e-way bills generated in February 2023.

Commenting on the GST numbers, Assocham President Ajay Singh said that the highest-ever collection in April marks an excellent beginning of fiscal 2023-24.

"The GST numbers are indicative of robust growth of the Indian economy, on the back of a strong pick-up in consumer demand," he said. Assocham is a non-governmental trade association and advocacy group.

GST came into force on July 1, 2017, subsuming a plethora of indirect taxes.

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The Indian government collected a record 1.87 trillion rupees ($22.88 billion) as gross Goods and Service Tax (GST) revenue for the month of April 2023—the highest since the landmark indirect tax reform was implemented in the country in 2017.

The Indian government collected a record 1.87 trillion rupees ($22.88 billion) as gross Goods and Service Tax (GST) revenue for the month of April 2023—the highest since the landmark indirect tax reform was implemented in the country in 2017. According to the data released by Union Finance Ministry on Monday, the GST collected in April 2023 is up 12 per cent from last year. Compared to last month, the latest GST collections figure is up 16.8 per cent. In April last year, around Rs 1.68 trillion was collected. Of the 1.87 trillion rupees collected, Rs 38.4 billion came from the central GST (CGST), the state GST contributed Rs. 47 billion, while the Integrated Goods and Services Tax (IGST) accounted for Rs 12 billion, including Rs 9 billion collected on import of goods. The government has settled Rs 45.8 billion to CGST and Rs. 37.9 billion to SGST from IGST. The total revenue of the Centre and the states in the month of April 2023 after the regular settlement is Rs. 84.3 billion for CGST and Rs. 85.3 billion for SGST. “The revenues for the month of April 2023 are 12 per cent higher than the GST revenues in the same month last year,” the ministry said. April 2023 saw the highest-ever tax collection on a single day on April 20. A sum of Rs 68 billion crore was paid through 9,80,000 transactions on that day. The highest single-day payment last year (on the same date) was Rs 57 billion through 9,60,000 transactions. The ministry said that the number of e-way bills generated in March 2023 was 90 million, which is 11 per cent higher than the 81 million e-way bills generated in February 2023. Commenting on the GST numbers, Assocham President Ajay Singh said that the highest-ever collection in April marks an excellent beginning of fiscal 2023-24. "The GST numbers are indicative of robust growth of the Indian economy, on the back of a strong pick-up in consumer demand," he said. Assocham is a non-governmental trade association and advocacy group. GST came into force on July 1, 2017, subsuming a plethora of indirect taxes. WATCH WION LIVE HERE

Indian govt collects record $23 billion in GST revenues in April 2023

Telangana Chief Minister K. Chandrashekhar Rao is all set to wage a legal battle against the Centre for taking unilateral decisions on the Goods and Service Tax (GST).

Rao registered a protest against the decisions taken by the GST Council in New Delhi yesterday and is also considering to write to Prime Minister Narendra Modi in this regard.

The Telangana chief minister believes that levying the GST on all ongoing projects across the nation is subjected to injustice.

Telangana Minister KT Rama Rao reiterating the same at the GST Council meeting demanded the GST should be lifted for drinking water schemes, laying of roads and irrigation.

The GST council has decided to reduce the tax from 18 per cent to 12 per cent for these schemes. But the Centre has decided to levy 12 per cent GST on the ongoing projects.

The Telangana government has been opposing the levying of 18 per cent GST on irrigation, drinking water and housing schemes, which are useful to the people, for which the chief minister has already written a letter to the prime minister and the Finance Minister Arun Jaitley.

&quot;It is an injustice to levy the GST on the ongoing projects. By implementing the GST on the projects that started before July 1, the loss will be to the tune of Rs. 19,000 crore. Not only Telangana but also all other states will incur this loss and it will become a national issue,&quot; the chief minister said in the protest yesterday in the national capital.

Rao also said that it will be difficult to implement the decision taken after the Budget. The project details have to be included in the Budget and it is not possible after the Budget.

&quot;By implementing the GST, the project estimates will increase and the same cannot be included in the Budget now. Hence, the Centre should change its decision. Or else a legal battle has to be fought in this regard,&quot; he added.&nbsp;

Rao registered a protest against the decisions taken by the GST Council in New Delhi yesterday

Telangana Chief Minister K. Chandrashekhar Rao is all set to wage a legal battle against the Centre for taking unilateral decisions on the Goods and Service Tax (GST). Rao registered a protest against the decisions taken by the GST Council in New Delhi yesterday and is also considering to write to Prime Minister Narendra Modi in this regard. The Telangana chief minister believes that levying the GST on all ongoing projects across the nation is subjected to injustice. Telangana Minister KT Rama Rao reiterating the same at the GST Council meeting demanded the GST should be lifted for drinking water schemes, laying of roads and irrigation. The GST council has decided to reduce the tax from 18 per cent to 12 per cent for these schemes. But the Centre has decided to levy 12 per cent GST on the ongoing projects. The Telangana government has been opposing the levying of 18 per cent GST on irrigation, drinking water and housing schemes, which are useful to the people, for which the chief minister has already written a letter to the prime minister and the Finance Minister Arun Jaitley. "It is an injustice to levy the GST on the ongoing projects. By implementing the GST on the projects that started before July 1, the loss will be to the tune of Rs. 19,000 crore. Not only Telangana but also all other states will incur this loss and it will become a national issue," the chief minister said in the protest yesterday in the national capital. Rao also said that it will be difficult to implement the decision taken after the Budget. The project details have to be included in the Budget and it is not possible after the Budget. "By implementing the GST, the project estimates will increase and the same cannot be included in the Budget now. Hence, the Centre should change its decision. Or else a legal battle has to be fought in this regard," he added.

Telangana CM K Chandrashekhar Rao to take Centre to court over GST

India has finalised four tax rates that will apply to services including telecoms, insurance, hotels and restaurants under the new Goods and Services Tax (GST) which should be rolled out on July 1, Finance Minister Arun Jaitley said on Friday.

The tax rates for services will be 5, 12, 18 and 28 percent - in line with those applying to goods.

Telecoms and financial services will be taxed at a standard rate of 18 percent while transport services will be taxed at 5 percent, Jaitley said.

&quot;The net effect of Goods and Services Tax will not be inflationary,&quot; Jaitley told reporters after a meeting of the GST Council in Srinagar, summer capital of Jammu and Kashmir state.

The council, comprising federal and state finance ministers, fixed rates on Thursday for more than 1,200 items under the GST, amid demands by some states to keep essential items under the lower tax category.

The new tax is likely to be non-inflationary as the government has kept a majority of food items, with a combined weighting of nearly 50 percent in the consumer price index, out of the tax net.

Basic food items like cereals, eggs and meat will attract zero tax while processed food items will be charged between 12 and 28 percent.&nbsp;

The long-awaited Goods and Services Tax has been hailed as India&#39;s biggest tax overhaul since independence in 1947. It will replace a slew of federal and state levies, transforming Asia&#39;s third largest economy into a single market.

&quot;GST regime will usher in lower taxes, seamless input tax credit, logistics savings and market share swings from unorganised to organised players,&quot; said Aditya Narain, Research head at Edelweiss Securities Ltd.&nbsp;

Prime Minister Narendra Modi, who completes three years of his term this month, had said the new tax will not cause price rises, while aiming to bring down tax leakages in the complex tax system.

(Reuters)

India's finance minister said the new rates should be implemented from July 1

India has finalised four tax rates that will apply to services including telecoms, insurance, hotels and restaurants under the new Goods and Services Tax (GST) which should be rolled out on July 1, Finance Minister Arun Jaitley said on Friday. The tax rates for services will be 5, 12, 18 and 28 percent - in line with those applying to goods. Telecoms and financial services will be taxed at a standard rate of 18 percent while transport services will be taxed at 5 percent, Jaitley said. "The net effect of Goods and Services Tax will not be inflationary," Jaitley told reporters after a meeting of the GST Council in Srinagar, summer capital of Jammu and Kashmir state. The council, comprising federal and state finance ministers, fixed rates on Thursday for more than 1,200 items under the GST, amid demands by some states to keep essential items under the lower tax category. The new tax is likely to be non-inflationary as the government has kept a majority of food items, with a combined weighting of nearly 50 percent in the consumer price index, out of the tax net. Basic food items like cereals, eggs and meat will attract zero tax while processed food items will be charged between 12 and 28 percent. The long-awaited Goods and Services Tax has been hailed as India's biggest tax overhaul since independence in 1947. It will replace a slew of federal and state levies, transforming Asia's third largest economy into a single market. "GST regime will usher in lower taxes, seamless input tax credit, logistics savings and market share swings from unorganised to organised players," said Aditya Narain, Research head at Edelweiss Securities Ltd. Prime Minister Narendra Modi, who completes three years of his term this month, had said the new tax will not cause price rises, while aiming to bring down tax leakages in the complex tax system. (Reuters)

India finalises four GST rates

India&#39;s cabinet has approved four bills to implement a planned Goods and Services Tax (GST) bills, a government official said on Monday, paving the way for Prime Minister Narendra Modi to implement the landmark tax reform from July.

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Union Cabinet okays <a href="https://twitter.com/hashtag/GST?src=hash">#GST</a> supplementary(IGST,UTGST,CGST) and compensation bills
&mdash; ANI (@ANI_news) <a href="https://twitter.com/ANI_news/status/843692465794179072">March 20, 2017</a></blockquote>
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The four bills are likely to be taken up by the parliament this week, and a separate state GST bill in state assemblies later, the official also said, requesting anonymity ahead of a planned news briefing.

The GST Council, comprising federal and state finance ministers, has already cleared all five draft laws - the Central GST, Integrated GST, state GST, Union territory GST and rules on compensating states for revenue losses.

There would be four tax slabs of 5, 12, 18 and 28 per cent, plus a levy on taxes on items like cars, aerated drinks and tobacco products to compensate states for any revenue losses in the first five years.

The new tax, biggest tax reform since India got independence in 1947 from the British colonial rule, is expected to boost the rate of economic growth by about 0.5 percentage points, broaden the revenue base and cut compliance cost for firms.

&nbsp;

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In breaking news, the cabinet has cleared four supporting GST Legislations. Here&#39;s more to this story (WION)
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(Reuters)

The four bills are likely to be taken up by the parliament this week, and a separate state GST bill in state assemblies later

India's cabinet has approved four bills to implement a planned Goods and Services Tax (GST) bills, a government official said on Monday, paving the way for Prime Minister Narendra Modi to implement the landmark tax reform from July. Union Cabinet okays #GST supplementary(IGST,UTGST,CGST) and compensation bills — ANI (@ANI_news) March 20, 2017 × The four bills are likely to be taken up by the parliament this week, and a separate state GST bill in state assemblies later, the official also said, requesting anonymity ahead of a planned news briefing. The GST Council, comprising federal and state finance ministers, has already cleared all five draft laws - the Central GST, Integrated GST, state GST, Union territory GST and rules on compensating states for revenue losses. There would be four tax slabs of 5, 12, 18 and 28 per cent, plus a levy on taxes on items like cars, aerated drinks and tobacco products to compensate states for any revenue losses in the first five years. The new tax, biggest tax reform since India got independence in 1947 from the British colonial rule, is expected to boost the rate of economic growth by about 0.5 percentage points, broaden the revenue base and cut compliance cost for firms. In breaking news, the cabinet has cleared four supporting GST Legislations. Here's more to this story (WION) × (Reuters)

India: Union Cabinet approves draft GST bills

By Praveen Sharma&nbsp; 
 
For once, it is the government, which has moved with lightning speed in its race to meet the GST rollout deadline of April 1,2017, while India Inc seems to be biting its nails and wondering how will it be able to keep pace with it. 
 
On Monday, the union cabinet led by Indian Prime Minister Narendra Modi approved the formation of GST Council, which was another major milestone in the journey of implementation of goods and services tax (GST) law, which will unify all existing indirect taxes to create a single nationwide market. 
 
The speed with which the government has moved till now on the crucial tax law it is well on track for the final destination, but corporates have expressed their inability to meet the deadline, which they have asked to be pushed back by a quarter or two. 
 
&quot;Industry bodies have been asking for more time. They want it to be delayed by a quarter or two. They would like to see the fine print and then prepare for the GST regime,&quot; said Mahesh Jaising, partner, BMR &amp; Associates LLP,&nbsp; 
 
And a fine-print wouldn&#39;t emerge before November or December. Jaising said in many overseas markets, where GST has been introduced, corporates were given about a year to tune their system to new tax regime. 
 
However, Jaising&#39;s colleague Rajeev Dimri, leader, indirect tax, BMR &amp; Associates LLP, said there was &quot;no case&quot; for India Inc to be in &quot;wait and watch&quot; any more. 
 
&quot;There is no case anymore for India Inc to remain in the wait and watch mode. It&#39;s high time that businesses roll up their sleeves to work towards creating a GST compliant internal set up by the go-live date,&quot; he said in a statement issued by BMR &amp; Associates LLP, a consulting firm.&nbsp; 
 
As per the article 279A (1) of the amended Indian constitution, the GST Council has to be formed within 60 days after it comes into force (Monday). 
 
The council will make recommendations on matters such as standard GST rate, model GST laws, principles that will govern the place of supply, threshold limits, goods and services that could be exempted from the levy and other matters relating to the indirect tax. 
 
It will be chaired by Indian&nbsp;finance minister while minister of state for finance and state finance ministers will be its members. The central government will have 1/3rd vote and the states will have two-third vote in the Council. Any decision will need 3/4 majority. 
 
Monday also saw Cabinet appointing the revenue secretary as the ex-officio secretary to the Council. The next meeting of the Council is slated to be held on September 22 and September 23. 
 
&quot;We are fully geared up for April 1, 2017, deadline for GST rollout,&quot; Hashmukh Adhia, revenue secretary in the finance ministry told the press after Cabinet meeting. 
 
Once the GST Council works out the details of the GST laws, it will have to be approved in the Parliament in the winter session, which is expected to be reportedly moved ahead by fortnight and held in the first week of November, to meet the deadline of April next fiscal. 
 
Two bills related to biggest tax reform will be taken up in the Parliament&#39;s next session &ndash; Central GST or CGST bill and the Integrated GST bill. States will approve their own GST bills. 
 
Prashant Deshpande, partner, Deloitte Haskins &amp; Sells LLP, said the &quot;immediate agenda&quot; of the Council would be to finalise the GST rate and exemptions; &quot;without a fix on which the stakeholder consensus would be difficult to achieve.&quot; 
 
Pratik Jain, leader - indirect tax, PwC India, also said implementation of GST from April 1, next fiscal would be contingent upon the speed at which the Council is able to build a consensus on issues such as rates, exemptions, dual control etc. 
 
BMR &amp; Associates LLP&#39;s Dimri said with the enforcement of section 12 of the Indian constitution (One Hundred and First Amendment) Act, 2016, the two months&#39; clock for setting up of the GST Council has started ticking. 
 
&quot;As soon as the Council gets formed it will have a platter full of important and critically time-driven deliverables. The most important of them being reaching consensus amongst all states regarding several aspects of levy and administration of GST in India viz. tax rates, list of goods to be exempt / taxable on merit rates of GST, determining the threshold for taxable turnover for goods and services, and so on,&quot; he said. 
 
The Constitutional amendment Bill for GST was passed in both Houses of the Parliament in the Monsoon Session this year after much delay. After being cleared there, it has been ratified by 17 states till now. It needed 15, or half of India&#39;s 29 states to approve it. Last week, it got the Presidential assent.

 
(This report first appeared on DNA)&nbsp;

The Cabinet led by PM Modi approved the formation of GST Council on Monday, a major milestone towards the implementation of the bill

By Praveen Sharma For once, it is the government, which has moved with lightning speed in its race to meet the GST rollout deadline of April 1,2017, while India Inc seems to be biting its nails and wondering how will it be able to keep pace with it. On Monday, the union cabinet led by Indian Prime Minister Narendra Modi approved the formation of GST Council, which was another major milestone in the journey of implementation of goods and services tax (GST) law, which will unify all existing indirect taxes to create a single nationwide market. The speed with which the government has moved till now on the crucial tax law it is well on track for the final destination, but corporates have expressed their inability to meet the deadline, which they have asked to be pushed back by a quarter or two. "Industry bodies have been asking for more time. They want it to be delayed by a quarter or two. They would like to see the fine print and then prepare for the GST regime," said Mahesh Jaising, partner, BMR & Associates LLP, And a fine-print wouldn't emerge before November or December. Jaising said in many overseas markets, where GST has been introduced, corporates were given about a year to tune their system to new tax regime. However, Jaising's colleague Rajeev Dimri, leader, indirect tax, BMR & Associates LLP, said there was "no case" for India Inc to be in "wait and watch" any more. "There is no case anymore for India Inc to remain in the wait and watch mode. It's high time that businesses roll up their sleeves to work towards creating a GST compliant internal set up by the go-live date," he said in a statement issued by BMR & Associates LLP, a consulting firm. As per the article 279A (1) of the amended Indian constitution, the GST Council has to be formed within 60 days after it comes into force (Monday). The council will make recommendations on matters such as standard GST rate, model GST laws, principles that will govern the place of supply, threshold limits, goods and services that could be exempted from the levy and other matters relating to the indirect tax. It will be chaired by Indian finance minister while minister of state for finance and state finance ministers will be its members. The central government will have 1/3rd vote and the states will have two-third vote in the Council. Any decision will need 3/4 majority. Monday also saw Cabinet appointing the revenue secretary as the ex-officio secretary to the Council. The next meeting of the Council is slated to be held on September 22 and September 23. "We are fully geared up for April 1, 2017, deadline for GST rollout," Hashmukh Adhia, revenue secretary in the finance ministry told the press after Cabinet meeting. Once the GST Council works out the details of the GST laws, it will have to be approved in the Parliament in the winter session, which is expected to be reportedly moved ahead by fortnight and held in the first week of November, to meet the deadline of April next fiscal. Two bills related to biggest tax reform will be taken up in the Parliament's next session – Central GST or CGST bill and the Integrated GST bill. States will approve their own GST bills. Prashant Deshpande, partner, Deloitte Haskins & Sells LLP, said the "immediate agenda" of the Council would be to finalise the GST rate and exemptions; "without a fix on which the stakeholder consensus would be difficult to achieve." Pratik Jain, leader - indirect tax, PwC India, also said implementation of GST from April 1, next fiscal would be contingent upon the speed at which the Council is able to build a consensus on issues such as rates, exemptions, dual control etc. BMR & Associates LLP's Dimri said with the enforcement of section 12 of the Indian constitution (One Hundred and First Amendment) Act, 2016, the two months' clock for setting up of the GST Council has started ticking. "As soon as the Council gets formed it will have a platter full of important and critically time-driven deliverables. The most important of them being reaching consensus amongst all states regarding several aspects of levy and administration of GST in India viz. tax rates, list of goods to be exempt / taxable on merit rates of GST, determining the threshold for taxable turnover for goods and services, and so on," he said. The Constitutional amendment Bill for GST was passed in both Houses of the Parliament in the Monsoon Session this year after much delay. After being cleared there, it has been ratified by 17 states till now. It needed 15, or half of India's 29 states to approve it. Last week, it got the Presidential assent. (This report first appeared on DNA)

Indian government closer to major tax reform law, corporates want more time

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