{"id":10851,"date":"2025-09-07T03:34:21","date_gmt":"2025-09-07T03:34:21","guid":{"rendered":"https:\/\/tezgyan.com\/index.php\/2025\/09\/07\/gst-reforms-govt-directs-firms-to-update-systems-says-rate-cut-benefits-must-reach-consumers-business-news\/"},"modified":"2025-09-07T03:34:21","modified_gmt":"2025-09-07T03:34:21","slug":"gst-reforms-govt-directs-firms-to-update-systems-says-rate-cut-benefits-must-reach-consumers-business-news","status":"publish","type":"post","link":"https:\/\/tezgyan.com\/index.php\/2025\/09\/07\/gst-reforms-govt-directs-firms-to-update-systems-says-rate-cut-benefits-must-reach-consumers-business-news\/","title":{"rendered":"GST Reforms: Govt Directs Firms To Update Systems, Says Rate Cut Benefits Must Reach Consumers | Business News"},"content":{"rendered":"<p><br \/>\n<\/p>\n<div id=\"story-9554700\">\n<p><span class=\"jsx-395e0e0beb19cb6e jsx-4143937483\">Last Updated:<\/span><time class=\"jsx-395e0e0beb19cb6e jsx-4143937483\">September 07, 2025, 08:42 IST<\/time><\/p>\n<h2 id=\"asubttl-9554700\" class=\"jsx-ff263f4b724d470d jsx-1099145119 asubttl-schema\">The GST Council led by Nirmala Sitharaman slashes GST to 5 percent and 18 percent slabs from September 22, promising lower prices on essentials, healthcare, education, and more.<\/h2>\n<div class=\"jsx-7dd6bcc4782610a2 artsharwrp\">\n<div id=\"artshare\" class=\"jsx-7dd6bcc4782610a2 artshare\">\n<div class=\"jsx-7dd6bcc4782610a2 stickdiv\">\n<div class=\"jsx-7dd6bcc4782610a2 deskwrapstkdiv\">\n<div class=\"jsx-7dd6bcc4782610a2 fontchange\"><img decoding=\"async\" src=\"https:\/\/images.news18.com\/dlxczavtqcctuei\/news18\/static\/images\/english\/font.svg\" height=\"30px\" width=\"30px\" alt=\"font\" class=\"jsx-7dd6bcc4782610a2 lazyload\"\/><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<figure class=\"jsx-ff263f4b724d470d jsx-1099145119 amimg\"><img decoding=\"async\" alt=\"The GST rationalisation will boost consumption in the country and push investments, says Finance Minister Nirmala Sitharaman.\" title=\"The GST rationalisation will boost consumption in the country and push investments, says Finance Minister Nirmala Sitharaman.\" src=\"https:\/\/images.news18.com\/ibnlive\/uploads\/2021\/07\/1627283897_news18_logo-1200x800.jpg?impolicy=website&amp;width=400&amp;height=225\" loading=\"eager\" fetchpriority=\"high\" class=\"jsx-ff263f4b724d470d jsx-1099145119\"\/><\/p>\n<p>The GST rationalisation will boost consumption in the country and push investments, says Finance Minister Nirmala Sitharaman.<\/p>\n<\/figure>\n<p id=\"1\" class=\"story_para_1\"><span class=\"cf0\"><strong>GST Reforms:<\/strong> The government has urged Indian companies to update their systems immediately, so that the new rates (5% and 18%) will be picked up by their systems for generating invoices from September 22. It has also reiterated that the rate cut benefits must pass down to consumers and they should not hold back any benefits accrued due to this rate cut with themselves. <\/span><\/p>\n<p id=\"2\" class=\"story_para_2\"><span class=\"cf0\">Moreover, the government said that the department is closely monitoring price trends pre-cut and post-cut and will intervene if there\u2019s a requirement. \u201cwe will be ready to take that to ensure that benefits are ultimately passed on to consumers,&#8221; Nirmala Sitharaman Office wrote in the X post. <\/span><\/p>\n<p id=\"3\" class=\"story_para_3\"><span class=\"cf0\">It added that various chambers and associations have given their assurances to pass down the benefits to customers. \u201cBut, we are otherwise confident that industries on their own will pass on the benefits. These kinds of assurances are being given by various chambers and associations to us,&#8221; the post said. <\/span><\/p>\n<div class=\"twtiframe\">\n<blockquote class=\"twitter-tweet\">\n<p dir=\"ltr\" lang=\"en\">The companies have to immediately take steps to update their systems so that the new rates are reflected.From 22nd September the new rates should be picked up by their systems for generating invoices.<\/p>\n<p>Secondly, they have to ensure that rate cut benefits are passed on to\u2026 <a href=\"https:\/\/t.co\/nvsXZXe8cB\" rel=\"nofollow\">https:\/\/t.co\/nvsXZXe8cB<\/a><\/p>\n<p>\u2014 Nirmala Sitharaman Office (@nsitharamanoffc) <a href=\"https:\/\/twitter.com\/nsitharamanoffc\/status\/1964210166074622298?ref_src=twsrc%5Etfw\" rel=\"nofollow\">September 6, 2025<\/a><\/p>\n<\/blockquote>\n<\/div>\n<p id=\"4\" class=\"story_para_4\"><span class=\"cf0\">In a sweeping reform, the GST Council, led by Finance Minister Nirmala Sitharaman, has approved a sharp overhaul of the Goods and Services Tax (GST) structure. Effective September 22, the system will be simplified into just two main slabs of 5% and 18%, replacing the current 12% and 28% rates, with a special 40% slab for luxury and sin goods. Billed as a \u201chistoric Diwali gift&#8221; for citizens and businesses, the reforms aim to lower the cost of living, boost consumption, and spur economic activity.<\/span><\/p>\n<p id=\"5\" class=\"story_para_5\"><span class=\"cf0\"><strong>Big Savings on Essentials:<\/strong> Household products like hair oil, shampoo, toothpaste, toilet soaps, shaving cream and toothbrushes will now attract just 5% GST instead of 18%. Rates on butter, ghee, cheese, packaged namkeens, dairy spreads and utensils have been cut from 12% to 5%. Feeding bottles, clinical diapers and sewing machines too move into the lowest slab.<\/span><\/p>\n<p id=\"6\" class=\"story_para_6\"><span class=\"cf0\"><strong>Healthcare Relief:<\/strong> Health and life insurance premiums, earlier taxed at 18%, are now exempt. Medical-grade oxygen, diagnostic kits, glucometers, test strips, corrective spectacles and thermometers will all attract only 5%.<\/span><\/p>\n<p id=\"7\" class=\"story_para_7\"><span class=\"cf0\"><strong>Education Boost:<\/strong> Learning materials such as maps, charts, globes, notebooks, pencils, crayons, sharpeners, pastels and erasers have been fully exempted from GST.<\/span><\/p>\n<p id=\"8\" class=\"story_para_8\"><span class=\"cf0\"><strong>Support for Farmers:<\/strong> Tractor <\/span><span class=\"cf0\">tyres<\/span><span class=\"cf0\"> and parts now fall under 5% (down from 18%), while tractors drop from 12% to 5%. Bio-pesticides, micro-nutrients, drip irrigation systems and agricultural machinery also join the lower slab, easing input costs for farmers.<\/span><\/p>\n<p id=\"9\" class=\"story_para_9\"><span class=\"cf0\"><strong>Cheaper Automobiles:<\/strong> Petrol, diesel and CNG cars within specified categories, earlier at 28%, will now face only 18%. The same applies to three-wheelers, motorcycles up to 350cc and commercial vehicles for goods transport.<\/span><\/p>\n<p id=\"10\" class=\"story_para_10\"><span class=\"cf0\"><strong>Lower Prices for Appliances:<\/strong> Consumer durables including air conditioners, large televisions, monitors, projectors and dishwashers shift from 28% to 18%, making big-ticket appliances more affordable.<\/span><\/p>\n<p id=\"11\" class=\"story_para_11\"><span class=\"cf0\"><strong>Process Reforms:<\/strong> Beyond rate cuts, the Council cleared procedural improvements such as automatic GST registration within three working days, provisional refunds via system-based evaluation, and simplified input tax credit rules.<\/span><\/p>\n<div class=\"jsx-95088aad1b3c53cd atawrap\">\n<div class=\"jsx-95088aad1b3c53cd atadetailwrp\">\n<div class=\"jsx-95088aad1b3c53cd ataname\"><span class=\"jsx-95088aad1b3c53cd atthumb\"><\/p>\n<figure class=\"jsx-95088aad1b3c53cd\"><img decoding=\"async\" alt=\"authorimg\" src=\"https:\/\/images.news18.com\/ibnlive\/uploads\/2025\/02\/WhatsApp-Image-2025-02-11-at-14.38.33-2025-02-47cdd4fd31681cc3efe5087cb8bd1418.jpeg?impolicy=website&amp;width=60&amp;height=60\" class=\"jsx-95088aad1b3c53cd\"\/><\/figure>\n<p><\/span><\/p>\n<div class=\"jsx-95088aad1b3c53cd attitle\"><a href=\"https:\/\/www.news18.com\/byline\/varun-yadav-28203.html\" class=\"jsx-95088aad1b3c53cd atamail\">Varun Yadav<\/a><\/p>\n<p>Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst&#8230;<span class=\"jsx-95088aad1b3c53cd aurpdebtn\">Read More<\/span><\/p>\n<\/div>\n<\/div>\n<p>Varun Yadav is a Sub Editor at News18 Business Digital. He writes articles on markets, personal finance, technology, and more. He completed his post-graduation diploma in English Journalism from the Indian Inst&#8230;<!-- --> <span class=\"jsx-95088aad1b3c53cd aurpdebtn\">Read More<\/span><\/p>\n<\/div>\n<\/div>\n<div class=\"jsx-ff263f4b724d470d jsx-1099145119 atbtlink fp\"><span>First Published:<\/span><\/p>\n<div class=\"rs\">\n<p>September 07, 2025, 08:29 IST<\/p>\n<\/div>\n<\/div>\n<div class=\"jsx-ff263f4b724d470d jsx-1099145119 brdcrmb\"><a href=\"https:\/\/www.news18.com\/\">News<\/a>  <a href=\"https:\/\/www.news18.com\/business\/\">business<\/a>  <span class=\"brdout\"> GST Reforms: Govt Directs Firms To Update Systems, Says Rate Cut Benefits Must Reach Consumers<\/span><\/div>\n<div id=\"coral-wrap\" class=\"jsx-ba4d8f086a12294f \">\n<div class=\"jsx-ba4d8f086a12294f coral-cont\">\n<div class=\"jsx-ba4d8f086a12294f coltoptxt\">Disclaimer: Comments reflect users\u2019 views, not News18\u2019s. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our <a href=\"https:\/\/www.news18.com\/disclaimer\/\" class=\"jsx-ba4d8f086a12294f\">Terms of Use<\/a> and <a href=\"https:\/\/www.news18.com\/privacy_policy\/\" class=\"jsx-ba4d8f086a12294f\">Privacy Policy<\/a>.<\/div>\n<\/div>\n<\/div>\n<p><span class=\"jsx-ff263f4b724d470d jsx-1099145119 rmbtn news18_read_more\">Read More<\/span><\/p>\n<\/div>\n<p><script async src=\"\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\n<br \/><br \/>\n<br \/><a href=\"https:\/\/www.news18.com\/business\/gst-reforms-govt-directs-firms-to-update-systems-warns-rate-cut-benefits-must-reach-consumers-ws-l-9554700.html\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Last Updated:September 07, 2025, 08:42 IST The GST Council led by Nirmala Sitharaman slashes GST to 5 percent and 18 percent slabs from September 22, promising lower prices on essentials, healthcare, education, and more. The GST rationalisation will boost consumption in the country and push investments, says Finance Minister Nirmala Sitharaman. GST Reforms: The government&#8230;<\/p>\n","protected":false},"author":1,"featured_media":10432,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[45],"tags":[],"class_list":["post-10851","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts\/10851","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/comments?post=10851"}],"version-history":[{"count":0,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/posts\/10851\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/media\/10432"}],"wp:attachment":[{"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/media?parent=10851"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/categories?post=10851"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tezgyan.com\/index.php\/wp-json\/wp\/v2\/tags?post=10851"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}