Next-Gen GST Reform 2025

Hype — Tue, 09 Sep 2025 13:02:15 +0000

The GST overhaul is expected to catalyze structural changes in the Indian economy. Experts estimate that the reform could lead to a reduction in inflation by up to 1.1 percentage points, as lower taxes on essentials and consumer goods will bring down overall price levels. The simplified tax structure, coupled with procedural reforms, is anticipated to encourage greater formalization of the economy by making compliance easier and more predictable. This, in turn, could attract more foreign investment and enhance India’s global competitiveness by reducing the cost of doing business. The 56 GST Council meeting will have a significant and varied impact across major sectors of Indian Economy i.e., Automotive Sector, Healthcare and Insurance, FMCG and Retail & Business and Compliance.

From Farmer to Enterprises, From households to Business, everyone will get benefitted

1. Save Big on Daily Essentials

*ITEM*	*Rate*
Items like shampoo, toothpaste, and soap.	18% to 5%
Butter, ghee, cheese, and dry snacks.	12% to 5%
Processed namkeens, Bhujia, and mixtures.	12% to 5%
Utensils.	12% to 5%
Feeding bottles, napkins for babies, and baby carriers.	12% to 5%
Sewing machines and parts.	12% to 5%

2. Affordable Education

Maps, charts, and globes.	12% to nil
Pencils, sharpeners, crayons, and pastels.	12% to nil
Exercise books and notebooks.	12% to nil
Erasers.	12% to nil

3. Relief in Healthcare Sector

Individual health and life insurance	18% to 5%
Thermometers.	18% to 5%
Medical grade oxygen.	18% to 5%
All diagnostic kits and reagents	12% to 5%
Glucometers and test strips.	12% to 5%
Corrective spectacles	12% to 5%

4. Save on Electronic Appliances

Air Conditioners	28% to 18%
Television (above 32″ including ultra LCD TVs).	28% to 18%
Monitors and projectors.	28% to 18%
Dish washing machines.	28% to 18%

5. Automobiles made affordable

Petrol and petrol hybrid, LPG, and CNG cars (not exceeding 1200cc and 4000mm).	28% to 18%
Diesel and diesel hybrid cars (not exceeding 1500cc and 4000mm).	28% to 18%
Two-wheeler vehicles.	28% to 18%
Motorcycles (350cc and below).	28% to 18%
Motor vehicles for transport of goods.	28% to 18%

6. Uplifting Farmers & Agriculture

Tractors, tractor tires, and parts.	18% to 5%
Specified bio-pesticides, micro-nutrients, and drip irrigation systems.	12% to 5%
Agricultural, horticultural, or forestry machines for soil preparation, cultivation, harvesting, and threshing.	12% to 5%

G S T P R O C E S S R E F O R M

Registration: Automatic registration within three working days for applicants. It will be simplified for ease based on data analysis.
Refunds: Refunds will be sanctioned by a proper officer through a system to limit the risk of human bias. The reform also includes zero rated supplies and supplies with inverted duty structure.
Rate Rationalization: This change replaces the complex rate structure i.e., 5%, 12%, 18% & 28% slabs with primary two i.e., 5% & 18% along with a new, special 40% de-merit rate for selected luxury and sin goods such as Pan Masala, Cigars & Cigarettes, Tobacco, Revolvers, Pistols, Car exceeding 1200CC & Motorcycle exceeding 350CC.

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Hype, Author at AccountsUp

Next-Gen GST Reform 2025

From Farmer to Enterprises, From households to Business, everyone will get benefitted

G S T P R O C E S S R E F O R M