04.09.202503:50:47UTC+00India GST Rate Cuts Effective September 22

During the 56th meeting of India's GST Council, presided over by Finance Minister Nirmala Sitharaman, a landmark revision of the Goods and Services Tax (GST) framework was sanctioned. This overhaul, the most significant since the GST's inception eight years ago, is set to be implemented on September 22. However, tobacco products will be governed by separate stipulations. As reported by The Economic Times, the Council, which is the pinnacle authority for GST decisions, endorsed extensive reductions in tax rates on numerous everyday items and select services. This move aims to enhance affordability and boost consumer spending. The new tax system introduces a streamlined dual-rate structure at 5% and 18%, thereby phasing out the 12% and 28% rate brackets. The reform is anticipated to contribute an additional 20 to 30 basis points to the country's GDP growth, serving to mitigate the impact of the recently enacted 50% tariffs imposed by the United States.