In a major move to provide relief to the public, the Indian government has approved a list of 40 items for a GST rate cut. This move, estimated to cost Rs 48,000 crore for the exchequer, will bring down the taxes on essential goods and services such as daily necessities, agriculture, healthcare, education, automobiles, and electronics. Prime Minister Narendra Modi had promised a "Diwali gift" for the citizens and this step towards "next-gen" GST reforms promises to make life easier for the common man. Get the lowdown on tax savings ahead with Zee Business.
Finance Minister Nirmala Sitharaman has announced major changes in the GST structure to ease tax burden for common people and promote consumption in the economy. The new two-slab structure, with rates of 5% and 18%, replaces the previous four-slab system. Essential items will be charged lower rates while sin and luxury goods will be taxed at 40%. This move is expected to have a positive impact on FMCG, healthcare, and auto sectors.
The GST Council has approved new rates for hundreds of goods and services, but tobacco products will continue to operate under the existing system until the government repays loans taken during the pandemic. Finance Minister Nirmala Sitharaman has stated that the loan repayments will happen within this calendar year, and once they are met, there will not be any cess and these items will attract a special rate of 40%. While many have praised the two-tier rate structure and decreasing rates for common man's daily use items, concerns remain over the potential revenue implications for both the Centre and state governments.
The Centre is proposing a 5% tax on electric vehicles as part of its ambitious overhaul of the Goods and Services Tax (GST). This proposal, which also includes simplifying the GST structure to just two tax rates and a potential 40% rate for luxury items, aims to lower prices of daily-use items and ease the burden on consumers. However, opposition-ruled states are demanding compensation for potential revenue loss. The two-day GST Council meeting, chaired by Union Finance Minister Nirmala Sitharaman, will deliberate on the proposal before announcing final decisions on September 4.
A new advertisement for Tata's Harrier EV showing the car on a pothole-filled road has sparked a discussion on social media. Some praised the ad for highlighting the car's off-roading capabilities, while others criticized it for exploiting India's poorly maintained roads. Despite the mixed response, the marketing tactic has gained attention for its creativity in turning a negative situation into a selling point.
The GST Council has approved a hike in tax rate on carbonated and caffeinated beverages, as well as other non-alcoholic beverages. The rate has been increased from 28% to 40%, which will result in these drinks becoming costlier. This decision was arrived at after a marathon 10.5-hour meeting of the GST Council, with the aim of rationalizing and reforming the GST structure.
After a marathon 10.5 hour meeting, the GST Council has approved a new two-tier tax structure of 5 and 18 per cent. This move will result in various items such as daily essentials, beauty and wellness services, and even tractor tyres seeing a reduction in GST rates. With the changes set to be implemented from September 22, all eyes are now on the list of items that will benefit from the revised rates.
In a crucial decision, the GST Council has decided to exempt health and life insurance premiums from the levy of goods and services tax (GST), effective from September 2025. This move is expected to make insurance products more affordable and accessible for middle-class households and young buyers, as their cost will be reduced by around 15 per cent. However, this could lead to a revenue shortfall for the government, while insurance companies may see a 3-6 per cent impact on combined ratios.
The state of Punjab has been declared as flood-hit, with all 23 districts affected and 30 lives lost. The deluge has impacted over 3.5 lakh people and caused damage to 1,48,590 hectares of standing crops. With the situation worsening, Governor Gulab Chand Kataria and Chief Minister Bhagwant Mann have visited the affected areas, calling for increased compensation and release of pending funds from the Centre. In the midst of this crisis, the health minister has deployed 818 medical teams in the State to provide essential services to those affected. Follow us on Instagram for the latest updates.
India's Prime Minister Narendra Modi announces the country's goal to reach a $1 trillion semiconductor market by 2025 during the 2025 edition of the annual semiconductor conference, Semicon India. The government is implementing new policies to ensure rapid approval and reduce the time it takes to start semiconductor projects in India. This move reflects the world's trust in India and highlights the country's commitment to long-term support for the semiconductor ecosystem.