Fin Min’s rules on transition of goods stocked under higher GST slabs coming soon, says Piyush Goyal

Commerce minister Piyush Goyal

The Finance Ministry will soon notify a transitional arrangement on handling goods already stocked under the higher goods and services tax (GST) slabs as new rates kick in for most categories from September 22, Commerce Minister Piyush Goyal said.

The Commerce Minister’s comments have come at a time when dealers are uncertain over how to handle Input Tax Credit (ITC) for goods stocked under the old and higher GST slabs.

Speaking on the GST reforms, Goyal on September 5 said the government will ensure that the entire benefits of rate reductions are passed on to the consumers by the industry.

The minister clarified that the decision to reduce GST rates had nothing to do with any other nation, or upcoming state elections.

The United States has imposed steeper tariffs on India, doubling it to 50 percent from August 27.

"The decision on GST reforms has nothing to do with any other nation. This change did not happen overnight, for at least a year states and Centre have been working on reforming GST that led to the decision on September 3. What is happening with other nations has only been happening for the past one month or so. So, these two are not related," Goyal said.

The changes in GST rates of all goods except pan masala, gutkha, cigarettes, chewing tobacco products like zarda, unmanufactured tobacco and bidi, will be implemented from September 22, 2025.

The GST Council approved the overhaul of the indirect tax system by modifying the structure into a ‘Simple Tax’ with a standard rate of 18 percent and a merit rate of 5 percent. A special de-merit rate of 40 percent will be levied for a select few goods and services.

With the required amendments in the Central GST Act, 2017 yet to be implemented, the Central Board of Indirect Taxes and Customs (CBIC) shall administratively start implementation of the revised system of grant of 90 percent of provisional refunds arising out of the inverted duty structure on the basis of data analysis and risk evaluation done by the system.