"States Need To Be Compensated For Revenue Losses": P Chidambaram On GST Move

P Chidambaram -- Congress's former Union Minister who handled the finance portfolio -- said today that while the rationalisation of the Goods and Services Tax law is welcome, it is eight years too late.

From September 22, 2025, all individual life and health insurance premiums will attract 0% GST, down from 18%. Announced after the 56th GST Council meeting, this move cuts upfront costs, may widen coverage, and nudges households to buy adequate prote

The Union Minister announced the new GST structure for the country, bringing the GST rate on smaller cars down to 18 per cent.

The rationalisation of Goods and Services Tax is the "biggest reform since Independence," Prime Minister Narendra Modi said today

Union Finance Minister Nirmala Sitharaman announced the new GST structure yesterday, with bikes above the 350cc category receiving 40 per cent GST.

Prime Minister Narendra Modi, speaking on the rationalization of Goods and Services Tax today, attacked the Opposition Congress, pointing out that they taxed anything and everything -- daily essentials, food and medicine

The rationalisation of Goods and Services Tax slabs - from four to two, and exemption of certain items, including premiums for health and life insurance - reflect a "holistic and well thought-out" decision, Commerce Minister Piyush Goyal said.

The rationalisation of Goods and Services tax, done eight years after the flagship reforms were initiated, took place after a clear directive from Prime Minister Narendra Modi delivered from the ramparts of the Red Fort on Independence Day.

The premium wear segment accounts for about 18% of the apparel industr,y worth $70 billion

Rationalisation of GST slabs will lead to increased demand that will, in turn, push for greater investment as manufacturers ramp up production to meet that uptick, Amitabh Kant, the former CEO of government think-tank NITI Aayog, said.

Viewing GST 2.0 as a mere well-timed political move would be incorrect. GST 2.0 reflects the Modi government's appetite to stitch good economics with good politics.

The GST Council reduced tax on small cars and motorcycles below 350cc to 18%, a move hailed by automakers as boosting affordability, demand, and manufacturing growth.

The GST rate reduction on cement will not only support domestic manufacturers but also accelerate the pace of infrastructure development and catalyse industrial expansion in India, industry players said on Thursday.

The GST Council announced a major revision in GST rates on September 3, 2025.