he government has rolled out significant GST reforms in its 56th Council meeting, simplifying the tax structure to a two-slab system of 5% and 18%, with a special 40% slab for luxury and sin goods. Early Diwali bonuses and streamlined taxation aim to boost consumption and ease inflation pressures. Finance Minister Nirmala Sitharaman stated that the reforms prioritize the common man.
The automobile industry emerges as a key beneficiary under GST 2.0. Small petrol and diesel cars now attract 18% GST, down from 29% and 31% respectively. Mid-size cars see a cut from 45% to 40%, and SUVs/luxury vehicles drop from 48% to 40%. Two-wheelers under 350cc now attract just 18% GST, while larger bikes above 350cc see a hike to 40%. Electric vehicles remain at a flat 5%. The logistics sector - including trucks, buses, ambulances, and three-wheelers - also benefits from a reduced GST of 18% from the previous 28%.
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Finance Minister Nirmala Sitharaman on Friday said GST officers should be polite and empathetic in dealing with honest taxpayers and asked them to use technology for faster registration approvals and grievance redressal.
Goods and Services Tax (GST) reforms will reduce costs and broaden markets for Ladakh's artisans, farmers, and tourism operators, and safeguard local crafts, the government said on Wednesday.
Amidst all the hoopla, it is the State governments that truly deserve recognition for coming together for the GST revision. Because the States are the ones bearing the brunt of massive revenue losses.
Karnataka Chief Minister Siddaramaiah on Tuesday hit out at the Bharatiya Janata Party (BJP)-led Centre for not giving "a rupee" to the state and even questioned the reforms in the Goods and Services Tax (GST) that was introduced before Diwali.
Grant Thornton Bharat survey claims 41 percent of the total 2,800 respondents plan vehicle purchase this festive season as GST 2.0 makes vehicles more affordable.
Opinion | Why States, Not Centre, Should Get All The Credit For GST 'Savings'Derek O’Brien
Wednesday October 22, 2025Amidst all the hoopla, it is the State governments that truly deserve recognition for coming together for the GST revision. Because the States are the ones bearing the brunt of massive revenue losses.
Opinion: GST Cut, Inflation Under Control: Optimism As Festival Season ApproachesBharti Mishra Nath
Friday September 19, 2025Away from politics, floods, rain-related tragedies and the Trump tariffs, there is optimism in the air. With GST rationalized, inflation in control, the upcoming festival season promises good times.
Opinion | Next-Generation GST: A Reform That Places The Middle Class At The CentrePradeep Bhandari
Saturday September 06, 2025By ensuring both direct tax relief and rationalised indirect taxes, the government has empowered the common citizen to save more, spend more, and aspire more.
Opinion | Observations From A Student of Political Communication - By Derek O'BrienDerek O’Brien
Friday September 05, 2025For a student of political communication, this week has been fodder. The language used to describe GST reforms has been nothing short of grand. "Landmark". "Biggest ever since the 1990s". The Opposition has been advocating for such 'reforms' for eigh
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