- 09 Sep 2025 06:32 PM
- New
Major GST Reductions to Boost Cooperatives, Farmers & Rural Enterprises
The central government has announced significant GST rate reductions across sectors that directly impact cooperatives, farmers, and rural enterprises. These reforms include GST exemptions on milk and paneer and a reduction to 5% on butter and ghee, directly benefiting over 10 crore dairy farmers. The tax on various cooperative-processed foods like cheese, pasta, jams, and juices has also been reduced to 5%, which is intended to lower household expenses and stimulate demand. Additionally, GST on packing materials like paper, cases, and crates is now 5%, which eases logistics costs. In agriculture, tractors under 1800 cc and their components have seen GST reduced to 5%, as have key fertilizer inputs and twelve bio-pesticides. This aims to make farm equipment and inputs more affordable, promoting mechanization and sustainable farming practices. Commercial trucks and delivery vans now have an 18% GST rate, which is expected to reduce logistics costs and improve export competitiveness.
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- 09 Sep 2025 06:24 PM
- New
Govt allows revised MRP stickers on unsold stock after GST rate changes
Manufacturers and importers can adjust maximum retail prices to reflect new GST rates until 31 December, easing transition and reducing packaging waste.
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- 09 Sep 2025 06:46 PM
- New
GST Rationalization Boosts Dairy Sector; Most Products Now at Nil or 5%
The 56th GST Council approved significant tax rationalizations for India’s dairy sector, effective September 22, 2025. This reform is one of the most extensive overhauls of GST rates for milk and milk products, with most now at a nil or 5% rate. The changes include reducing GST on UHT milk and pre-packaged paneer to nil, while butter, ghee, cheese, condensed milk, and certain milk beverages now have a 5% GST, down from 12%. Ice cream and milk cans also saw their GST rates drop to 5%. This move is expected to benefit over 8 crore rural farmer families and a large segment of consumers. By lowering operational costs and increasing competitiveness, the reforms aim to support the livelihoods of small farmers and landless laborers. As the world’s largest milk producer, with an output of 239 million tonnes in 2023-24, India’s dairy industry is a cornerstone of the agricultural economy, contributing 5.5% to the national GDP. The GST changes are projected to enhance the sector’s productivity and competitiveness, ensuring sustainable livelihoods for millions.
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- 09 Sep 2025 06:27 PM
Compensation cess accumulated in auto cos books to lapse on Sep 22: Official
New Delhi, Sep 9 (PTI) An estimated ₹2,500 crore accumulated compensation cess on the books of auto companies will lapse on September 22, when the new GST rates come into effect, an official said.
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- 09 Sep 2025 06:42 PM
GST Council Approves New Rate Cuts & Reforms
Source: https://taxguru.in/goods-and-service-tax/gst-council-approves-new-rate-cuts-reforms.html
The Prime Minister of India, Narendra Modi, has commended the GST Council for unanimously accepting the Union Government’s proposals regarding GST rate cuts and reforms. These changes are intended to provide relief to various segments of society, including the common man, farmers, MSMEs (Micro, Small, and Medium Enterprises), the middle class, women, and the youth. The Prime Minister stated that these comprehensive reforms would enhance the quality of life for citizens and promote ease of doing business, particularly for small traders and businesses. The decision aligns with the government’s previous commitment to implement next-generation GST reforms, which were first mentioned in the Prime Minister’s Independence Day speech. The proposals were designed to improve citizens’ ease of living and strengthen the overall economy.
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- 09 Sep 2025 06:49 PM
Fisheries GST Rate Reduction: 5% Rate on Nets, Seafood
The Ministry of Fisheries, Animal Husbandry & Dairying has announced a major GST reduction for the fisheries sector. Approved during the 56th GST Council meeting, the new rates will be effective from September 22, 2025. This change lowers GST to 5% on a range of essential goods and services, including fish oils, preserved fish, and shrimp products, which were previously taxed at 12%. The move aims to make seafood more affordable for domestic consumers and improve the competitiveness of Indian exports. Additionally, inputs critical for aquaculture, such as diesel engines, pumps, aerators, and specific chemicals, will also see a GST reduction from 12-18% down to 5%, significantly decreasing operational costs for farmers. The new rates also apply to fishing gear, job work services in agro-processing, and composting machines, providing financial relief to fishers and processing units. These measures are intended to support the livelihoods of over 3 crore people and contribute to the growth and sustainability of India’s fisheries sector, which is the second-largest in the world.
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- 09 Sep 2025 06:39 PM
GST Reform: Lowered Rates for Textiles & Garments
Source: https://taxguru.in/goods-and-service-tax/gst-reform-lowered-rates-textiles-garments.html
The Ministry of Textiles has announced that the GST Council’s 56th meeting, held on September 3, 2025, approved a series of GST rate reductions for the textiles sector. These changes are intended to remove structural issues, lower production costs, and improve India’s global market position. The reforms include a reduction of GST on readymade garments and made-ups from 12% to 5% for items up to ₹2,500, a move expected to increase consumer demand, particularly in smaller towns and rural areas. Additionally, GST on man-made fibers and yarns has been lowered from 18% and 12% respectively to a uniform 5%, which corrects the inverted duty structure and eases the financial burden on manufacturers. Handloom, handicraft items, and carpets have also seen their GST reduced from 12% to 5% to support artisans and traditional crafts. These reforms are part of the government’s plan to boost the domestic market and help the textile and apparel sector reach a USD 350 billion target by 2030.
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- 09 Sep 2025 06:18 PM
Festive bonanza for car buyers: Kia, MG Motor among automakers announcing discounts after GST rate cuts
Kia India and MG Motor have reduced vehicle prices ahead of the festive season, effective from September 22, 2025, joining other carmakers such as Mahindra & Mahindra, Tata Motors, and the luxury brand BMW.
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- 09 Sep 2025 06:21 PM
GST reform needs more than rate cuts. The ball is in the states' court
The latest rationalisation of GST slabs has sent a quiet but significant signal: tax rates are no longer untouchable. In the past, governments have hesitated to fiddle with tax rates much, on the premise that a bird in the hand is worth two in the bush.
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- 09 Sep 2025 06:12 PM
GST reforms were long overdue, there were too many rates, says Jamshyd Godrej
Jamshyd Godrej, Managing Director of Godrej & Boyce, has said that the Goods and Services Tax (GST) was long overdue and underlined the need for resilience in the face of global disruptions.
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