{"id":1180,"date":"2025-09-04T06:12:18","date_gmt":"2025-09-04T06:12:18","guid":{"rendered":"https:\/\/newsraise.com\/in\/?p=1180"},"modified":"2025-09-04T06:12:18","modified_gmt":"2025-09-04T06:12:18","slug":"next-gen-gst-roll-out-from-september-22-check-out-the-major-reforms","status":"publish","type":"post","link":"https:\/\/newsraise.com\/in\/2025\/09\/04\/next-gen-gst-roll-out-from-september-22-check-out-the-major-reforms\/","title":{"rendered":"Next-Gen GST Roll Out from September 22: Check Out the Major Reforms"},"content":{"rendered":"\n<!-- Quick Adsense WordPress Plugin: http:\/\/quickadsense.com\/ -->\n<div class=\"9fece8afa224fd09e54b043d0febfb58\" data-index=\"1\" style=\"float: none; margin:10px 0 10px 0; text-align:center;\">\n<script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js\"><\/script>\r\n<!-- NR ATF -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-client=\"ca-pub-8898941184964366\"\r\n     data-ad-slot=\"4839033563\"\r\n     data-ad-format=\"auto\"\r\n     data-full-width-responsive=\"true\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script>\n<\/div>\n<p>The <a href=\"https:\/\/newsraise.com\/in\/2025\/09\/03\/gst-council-meeting-major-rate-cuts-two-tier-structure-on-agenda\/\">GST Council<\/a> on September 3 announced a landmark overhaul of the indirect tax regime, replacing the existing four-tier structure of 5, 12, 18, and 28 per cent with a <strong><em>simplified two-rate system of 5 and 18 per cent<\/em><\/strong>, while introducing a <strong><em>special 40 per cent slab for select items<\/em><\/strong>.<\/p>\n<p><a href=\"https:\/\/newsraise.com\/in\/2025\/09\/02\/pm-modi-slams-rjd-congress-over-insult-to-late-mother-during-bihar-yatra\/\">PM Narendra Modi<\/a> hailed the GST reform, saying it will benefit farmers, MSMEs, traders, and the middle class, while giving a strong boost to the economy. The Union Finance minister Nirmala Sitharaman on Wednesday announced sweeping changes to the <a href=\"https:\/\/newsraise.com\/in\/2025\/09\/03\/gst-council-meeting-major-rate-cuts-two-tier-structure-on-agenda\/\">Goods and Services Tax (GST) regime after the 56th GST Council meeting in New Delhi<\/a>.<\/p>\n<p>Billed as the \u201c<strong>Next-Gen GST Reform<\/strong>\u201d, the move rationalizes the tax structure to two main slabs of 5% and 18% by merging the earlier 12% and 28% rates. A landmark decision also exempts all individual life and health insurance policies from GST, which the minister called a \u201chistoric Diwali gift\u201d for citizens. The changes are set to lower costs on essential goods and services, while certain luxury items and \u2018<strong><em>sin goods<\/em><\/strong>\u2019 will see higher rates.<\/p>\n<p><strong>Read More<\/strong>: Check out the complete tax structure with item classification on <a href=\"https:\/\/youbankingbud.com\/gst-rate-rationalization-check-out-the-system-slabs-and-major-changes\/\">https:\/\/youbankingbud.com\/gst-rate-rationalization-check-out-the-system-slabs-and-major-changes\/<\/a><\/p>\n<h3><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-1178 size-large\" src=\"https:\/\/newsraise.com\/in\/wp-content\/uploads\/2025\/09\/SALMON-1024x576.jpg\" alt=\"GST COUNCIL, TAX SLABS, NIRMALA SITHARAMAN, Ministry of Finance, NARENDRA MODI, INFLATION\" width=\"1024\" height=\"576\" srcset=\"https:\/\/newsraise.com\/in\/wp-content\/uploads\/2025\/09\/SALMON-1024x576.jpg 1024w, https:\/\/newsraise.com\/in\/wp-content\/uploads\/2025\/09\/SALMON-300x169.jpg 300w, https:\/\/newsraise.com\/in\/wp-content\/uploads\/2025\/09\/SALMON-768x432.jpg 768w, https:\/\/newsraise.com\/in\/wp-content\/uploads\/2025\/09\/SALMON.jpg 1200w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/h3>\n<h3><\/h3>\n<h3><strong>MAJOR REFORMS<\/strong><\/h3>\n<ul>\n<li>The <a href=\"https:\/\/newsraise.com\/in\/2025\/08\/28\/the-impact-of-trumps-50-tariff-on-india-begins-details-on-different-sectors\/\">revised GST rates on most goods and services<\/a> will be effective from 22nd September 2025 (first day of Navratri).<\/li>\n<li>For specific goods like cigarettes, chewing tobacco, unmanufactured tobacco, and beedis, the existing GST rates and compensation cess will continue for now. Their new rates will be notified later once all pending cess-related loan obligations are cleared.<\/li>\n<li>All medicines are prescribed a concessional GST rate of 5%, except those listed at nil rate.<\/li>\n<li>All medical, surgical, dental, and veterinary devices are taxed at 5% GST, unless specifically exempted.<\/li>\n<li>The GST on small petrol, LPG, CNG, and diesel cars has been cut from 28% to 18%. The term\u2019 small cars\u2019 implies:<\/li>\n<\/ul>\n<p><em>\u00a0 \u00a0 \u00a01) Petrol\/LPG\/CNG cars: Engine capacity up to 1200 cc and length up to 4000 mm<\/em><\/p>\n<p><em>\u00a0 \u00a0 \u00a02) Diesel cars: Engine capacity up to 1500 cc and length up to 4000 mm<\/em><\/p>\n<ul>\n<li>All mid-size and large cars exceeding 1500 cc engine capacity or 4000 mm length will now attract 40% GST (no compensation cess). The same 40% rate applies to SUVs, MUVs, MPVs and XUVs with ground clearance of 170 mm or above.<\/li>\n<li>The GST on air conditioners and dishwashers has been reduced from 28% to 18%, while all televisions and monitors (across all sizes) will have a standard rate of 18%.<\/li>\n<li>The goods that are or will be in transit will remain valid under the existing e-way bill. There is no requirement for cancellation or fresh generation.<\/li>\n<li>The aim is to keep similar goods at the same rate to prevent misclassification. Hence, \u2018<strong>other non-alcoholic beverages<\/strong>\u2019 fall under the 40% slab.<\/li>\n<li>Earlier, bread was exempt, but items like roti, paratha, and pizza bread were taxed differently. Now, <strong>all Indian breads, regardless of name, are exempt to ensure uniformity<\/strong>.<\/li>\n<li>Paneer sold in unpackaged form was already exempt. The exemption has now been extended to all paneer, including packaged and labelled ones, to support small-scale producers.<\/li>\n<li>All beauty and physical well-being services \u2014 including salons, gyms, yoga centres, and health clubs will now be taxed at 5%, down from 18%.<\/li>\n<li>All individual life insurance (term, ULIP, endowment) and health insurance (family, senior citizen, etc.) policies, and their reinsurance services are fully exempt.<\/li>\n<li><b>The GST on Hotel Rooms has been lowered from 12% with Input Tax Credit to 5% without it<\/b>. The tax on rooms up to INR 7500 has been reduced to 5%. In addition, economy class tickets to now attract just 5% GST, while all other classes will be at 18%.<\/li>\n<\/ul>\n\n<div style=\"font-size: 0px; height: 0px; line-height: 0px; margin: 0; padding: 0; clear: both;\"><\/div>","protected":false},"excerpt":{"rendered":"<p>The GST Council on September 3 announced a landmark overhaul of the indirect tax regime, replacing the existing four-tier structure of 5, 12, 18, and&#8230;<\/p>\n","protected":false},"author":4,"featured_media":1181,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3,299],"tags":[200,499,76,219,497,501,500],"class_list":["post-1180","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","category-news","tag-economy","tag-finance","tag-gst","tag-narendra-modi","tag-nirmala-sitharaman","tag-tariff","tag-taxes","entry"],"_links":{"self":[{"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/posts\/1180","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/comments?post=1180"}],"version-history":[{"count":1,"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/posts\/1180\/revisions"}],"predecessor-version":[{"id":1182,"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/posts\/1180\/revisions\/1182"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/media\/1181"}],"wp:attachment":[{"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/media?parent=1180"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/categories?post=1180"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/tags?post=1180"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}