GST Council Meeting: Expect industry to pass down benefits of rate cuts eventually, says govt

Victory wrested from regime that only listens when forced: TMC on GST exemption on insurance

The Trinamool Congress on Wednesday termed the Centre’s decision to exempt life insurance and health insurance from GST a victory for common people, which it claimed was “wrested from a tone-deaf regime that only listens when forced”.

Announcing the outcome of the 56th GST Council meeting, Finance Minister Nirmala Sitharaman on Wednesday evening said that all individual life insurance policies whether term life, ULIP or endowment policies and subsequent reinsurance are exempt from GST.

“A victory for common people. A victory wrested from a tone-deaf regime that only listens when forced. From day one, Smt.@MamataOfficial warned the Finance Minister that taxing insurance premiums was cruel, anti-people, and would deter families from securing their future, leaving them vulnerable to financial ruin in times of crisis,” the Mamata Banerjee-led party said in a post on X.

GST revamp addresses deeper structural changes, prioritises real economy drivers: Deloitte

The GST revamp that slashes tax rates on goods and services into a simplified two-slab structure addresses deeper structural changes, prioritising the "real drivers of the economy", says Deloitte India.

Mahesh Jaisingh, Partner & Indirect Tax Leader at Deloitte India, said the 56th GST Council meeting signals a strong reformist intent, going beyond mere rate rationalisation to address deeper structural changes and ease of doing business.

GST tax rates on common use items ranging from hair oil to corn flakes, TVs, and personal health and life insurance policies were slashed after the GST Council on Wednesday approved a complete overhaul of the tangled Goods and Services Tax regime.

GST cuts to fuel GDP growth by 100 to 120 bps in next 4-6 quarters, says economist

Garima Kapoor, economist and executive vice president, Elara Capital, on GST Council Meeting:

At the first impression, the GST rate changes look favourable especially since there is across the board decline in daily use items including services like hotel rates below Rs 7,500. Moreover, very critical items like cement have seen a cut from 28% to 18% which should be huge positive for the infra sector. The efforts to further ease the compliance burden on tax filers is positive and should aid ease of doing business. Today’s GST rate changes, along with RBI’s rate cuts, income tax rebates announced in FY26 budget and easing inflation are all levers for a consumption uptick in the economy. We expect GST related demand boost to add 100 to 120 bps to the GDP growth over next 4-6 quarters, thereby nullifying the negative impact of higher tariffs on exports to US. We remain constructive on the uptick in consumption demand in the economy as multiple policy levers turn favourable for the first time in a decade.

GST changes a defining moment, says Mahindra Group CEO and MD Anish CEO

Anish Shah, Group CEO & MD, Mahindra Group on GST rate rationalisation:

“The next-generation GST reforms announced today mark a defining moment in India’s journey towards building a simpler, fairer, and more inclusive tax system. By moving to a streamlined two-rate structure and focusing on essentials that touch the lives of every citizen- from food, health, and insurance to agriculture and small businesses -the Government has reaffirmed its commitment to Ease of Living and Ease of Doing Business. The rationalisation measures will not only provide immediate relief to households but also strengthen key sectors such as automobiles, agriculture, healthcare, renewable energy, and MSMEs - all of which are vital to job creation and sustainable growth. The correction of long-pending inverted duty structures in critical industries is welcome.

At Mahindra, we view these reforms as transformative. They simplify compliance, expand affordability, and energise consumption, while enabling industry to invest with greater confidence. This bold step is in line with the vision articulated by the Hon’ble Prime Minister of building a citizen-centric, future-ready Bharat. It strengthens India’s economic foundations and will help drive the next phase of equitable and inclusive growth- journey towards Viksit Bharat @2047.”

Wide-ranging GST reforms to improve lives of citizens, ensure ease of business: PM Modi

Prime Minister Narendra Modi said on Wednesday that wide- ranging reforms approved by the GST Council will improve lives of citizens and ensure ease of doing business for all, especially small traders and businesses.

In a post on X, he said the Union government had prepared a detailed proposal for broad-based GST rate rationalisation and process reforms, aimed at ease of living for the common man and strengthening the economy.

He added, "Glad to state that the GST Council, comprising the Union and the States, has collectively agreed to the proposals submitted by the Union Government on GST rate cuts & reforms, which will benefit the common man, farmers, MSMEs, middle-class, women and youth." Modi noted that he had spoken about his government's intention to bring the next-generation reforms in GST during his Independence Day speech.

GST Cuoncil Meeting Live: Rate rationalisation a festive bonanza, says Niranjan Hiranandani

“The GST rationalisation is a festive bonanza for Indian consumers and a strategic boost for the economy. By enhancing purchasing power, stimulating consumption, and helping contain inflation, this reform creates a multiplier effect that will propel India’s GDP growth beyond 8%. At a time of global uncertainty, such fiscal stimulation underscores the resilience of our domestic economy and strengthens confidence in India’s growth trajectory. Industry and consumers alike stand to benefit from this progressive step.”

For the real estate and infrastructure sectors, the reduction of GST on critical construction materials like cement and steel from 28% to 18% is a landmark reform. This will significantly ease input costs, improve project viability, and accelerate infrastructure development across the country. Affordable housing, in particular, stands to gain as reduced construction costs can be passed on to homebuyers, making homes more accessible while supporting the government’s Housing for All vision. This rationalisation is not just a boost for developers—it is a win-win for consumers, the housing sector, and India’s long-term growth story.” — Niranjan Hiranandani, Chairman, Hiranandani and NAREDCO National.

GST Council Meeting Live: Rate cuts will have big impact on GDP, says FM

Union finance minister Nirmala Sitharaman said the government expects the GST rate reductions will have a "very big" impact on the country's GDP.

GST Council Meeting Live: Landmark move to bring health insurance under nil GST, says chairman of General Insurance Council

“The GST Council’s decision to bring health insurance under the NIL GST bracket is a landmark move that will make healthcare protection more affordable and accessible for millions of Indians. At a time when medical inflation is rising steeply, this step directly benefits citizens and eases the financial burden on families. It is also in complete alignment with the vision of Insurance for All by 2047, enabling more people to secure their health and future. This progressive decision will accelerate insurance penetration and strengthen the nation’s health security.” – Dr. Tapan Singhel, MD & CEO, Bajaj Allianz General Insurance

GST Council Meeting Live: Trump's tariff didn't influence GST reform decisions

FM Sitharaman: The tariff turmoil didn't influence GST reforms. We have been working on this for over one-and-a-half year.

GST Council Meeting Live: Compensation cess will continue on tobacco and tobacco related products

Compensation cess will continue on tobacco and tobacco related products till the time the whole loan owed by centre is repaid. After that the cess will cease to exist: Govt

GST Council Meeting Live: Motor cycles above 350 cc at 40 percent, says govt

Motor cycles above 350 cc will be charged at 40 percent, the government said. Tax on EVs remain at 5%. Aircraft for personal use, yacht, helicopters cigars at 40 percent. No additional levy on luxury cars beyond 40%

GST Council Meeting Live: Expect industry to pass down benefits of rate cuts eventually

Industry has largely passed down the benefit of rate cuts even before. We expect the industry will pass down the benefits this time too eventually: Revenue secretary

GST Council Meeting Live: Tax buoyancy to boost GST revenues

Govt: Tax buoyancy will play a major role in bolstering GST revenues after new rates kick in

GST Council meeting: PM Modi says glad all of Centre's GST proposals approved by the Council

GST Council meeting: Life and health insurance policies exempted from GST

FM: Exemption of GST on all individual life policies, Exemption of GST on all individual health policies. Mid size and large cars will be under 40%

GST Council meeting live: Entire exercise will be fiscally sustainable for both Centre and states, says revenue secretary

GST Council meeting live: List of goods likely to get cheaper

GST Council Meeting Live: Likely revenue loss of Rs 48,000 crore

The Union revenue secretary said the government expects expect a  net revenue implication to be around 48,000 crore, on consumption base of 2023-24.

GST Council Meeting Live: Which goods will attract 40% GST?

FM Sitharaman: Special rate of 40% will apply only to pan masala, cigarettes, gutka, and other tobacco products. Caffeinated beverges and carbonated beverages will be covered in 40%.

GST Council Meeting Live: All cars under 1200 cc and bikes under 350 cc will be charged at 18%

FM Sitharaman: All cars under 1200 cc and bikes under 350 cc will be charged at 18%.

GST Council Meeting Live: All TV sets to be charged at 18 percent, says FM

GST Council meetings live: Goods that will now attract 5% GST

Sitharaman: Hair oil, soap, bars, toothpaste, bycle, table wear will now attract a levy of 5 percent. UHT milk and breads will have zero percent GST.

GST Council meeting live: Trade facilitation measures, and process reforms approved, says Sitharaman

FM: Trade facilitation measures, and process reforms have been approved. Simplification of complex documentation has been done.

GST Council Meeting Live: All the decisions taken with full consensus, says FM

FM Sitharaman: The decision of GST Council has been taken with full consensus. All Ministers supported rate rationalization

GST on retail sale price instead of transaction for tobacco products

GST will be levied on Retail Sale Price (RSP) instead of transaction value on Pan Masala, Gutkha, Cigarettes, Unmanufactured tobacco, Chewing tobacco like Zarda.

GST Council Meeting Live: Rates for most goods have come down drastically, says FM

FM: In most cases rates have come down drastically. Rates have been cut for farmers & agri, health related products

GST Council Meeting Live: Sitharaman says GST cut meant to provide benefits to the people

FM Nirmala Sitharaman: PM Modi desired to give benefit of GST cuts to people at the earliest. These reforms are not only on rationalising rates, but they are structural too. We have corrected inverted duty structure.

GST Council Meeting Live: We have reduced the slabs and we are addressing the issues of compensation

Union finance minister said the slabs have been reduced and they are looking into the issue of compensation.

GST Council Meeting Live: The reforms are structural, not just rate changes

GST Council Meeting Live: All states on board for rate rationalisation, 'consensus-based decision', says Bihar dy CM

The GST Council on Wednesday approved a two-tier rate structure of 5 and 18 per cent, which will be implemented from September 22. Bihar Deputy Chief Minister Samrat Choudhary said that all states were on board for the rate rationalisation, and it was a consensus-based decision.

West Bengal Finance Minister Chandrima Bhattacharya said the total loss due to GST rate rationalisation would be Rs 47,700 crore.

Uttar Pradesh Finance Minister Suresh Khanna said no decision has been taken on the tax incidence on demerit goods, and imposing a levy over and above the 40 per cent would be decided later.

The marathon 56th meeting of the GST Council lasted for 10.5 hours, in which the Centre and states thrashed out key tax proposals.

Top updates from the GST Council meeting so far

-New rates to apply from September 22

-Revenue short fall due to rate cuts -- Rs 93,000 crore

-Two slab GST rates approved- 5%, 18%

-Revenue gains from 40% slab-- Rs 45,000 crore

-Decision taken by concensus of GST Council , voting didn't happen

-No decision taken yet on compensating states for loss of revenue

GST Council Meeting Live: Andhra Pradesh supports GST reforms, says Finance Minister Keshav

The Andhra Pradesh government-led by N Chandrababu Naidu strongly supports the next-generation GST reforms being proposed by the Centre which are meant for the "best interest of the poorest of the poor", said Finance Minister P Keshav on Tuesday.

The minister attended the 56th GST Council meeting held in New Delhi today.

Keshav said these reforms align with Prime Minister Narendra Modi's Independence Day "Diwali gift" announcement, highlighting consumer benefits through rationalised tax rates, lower household costs, and "relief to the poorest citizens".

GST Council Meeting Live: GST reforms may incur revenue loss of Rs 2,000 cr annually to J'khand: Minister

Jharkhand Finance Minister Radhakrishna Kishore on Wednesday said that the proposed GST reforms could incur an annual revenue loss of Rs 2,000 crore to the state.

Taking part in the 56th GST Council meeting in New Delhi, he urged the central government to compensate for the estimated loss.

"The proposed GST reforms are estimated to cause a revenue loss of approximately Rs 2,000 crore in Jharkhand's automobile, cement, and other manufacturing sectors," Kishore said, according to a press statement.

GST Council Meeting Live: GST Council begins work to rejig tax rates; opposition states seek revenue protection

The work to overhaul the tangled goods and services tax (GST) began on Wednesday as the government looks to cut the tax rate on common-use items, ranging from butter to certain footwear and apparel, in an attempt to boost domestic spending and cushion the economic blow of US tariffs.

The marathon 56th meeting of the GST Council, the apex decision-making body on indirect taxes, headed by Union Finance Minister Nirmala Sitharaman and comprising representatives of all states, discussed reducing GST on life and health insurance premiums and easing compliance rules for business on the first day of the two-day meeting.

According to sources, the panel is likely to have discussed a three-way registration process for non-risky business and issuance of refunds, in case of exports, in seven days, among a host of measures to ease compliance burden.

GST Council Meeting Live: GST reforms may reduce J&K revenue by 10-12%, severely impacting fiscal position, says CM Omar Abdullah

Jammu and Kashmir Chief Minister Omar Abdullah on Wednesday said that the proposed GST reforms could reduce the UT's revenue by 10-12 per cent, adding to the severe fiscal crisis as its public revenues have "collapsed" in the aftermath of the Pahalgam terror attack.

In his written speech circulated at the 56th GST Council meeting, he called for the establishment of suitable mechanisms to ensure the fiscal stability of states and union territories.

"The major sectors of the economy, like tourism, transport, construction, automobiles have come to standstill post April 2025. The proposed reform can further reduce our GST revenues by 10-12 per cent. Hence as the Finance Minister of Jammu and Kashmir, I am of the opinion that establishing suitable mechanisms and safeguards for the fiscal stability of States and UTs is critical," he said.

GST Council Meeting Live: GST on footwear, apparels priced at Rs 2,500 cut to 5 pc

The GST Council is likely to have approved lowering the GST rate on footwear and apparel priced up to Rs 2,500 to 5 per cent, sources said on Wednesday.

Currently, footwear and apparel priced up to Rs 1,000 are taxed at 5 per cent. Beyond the threshold, 12 per cent Goods and Services Tax (GST) is levied.

The 56th GST Council, chaired by Union Finance Minister Nirmala Sitharaman and attended by state counterparts, decided to raise the threshold for footwear and apparel in the 5 per cent slab to Rs 2,500/ piece, from Rs 1,000/piece.

GST Council on Wednesday decided to do away with the 12 and 28 per cent slab and move the majority of the items from these slabs to 5 and 18 per cent respectively.

GST Council Meeting Live: GST Council approves dual tax rate structure of 5% and 18%: Source

The GST Council on September 3 approved a dual tax rate structure of 5 percent and 18 percent, removing the slabs of 12 percent and 18 percent, highly placed sources told Moneycontrol.

The two-day meeting of the top tax panel began on September 3 and will conclude on September 4. The meeting is chaired by Union finance minister Nirmala Sitharaman.

GST Council Meeting Live: Some states ask Centre to provide revenue-loss estimate

Three Opposition-ruled states have asked the Central government to provide an estimate for the likely loss from rate restructuring of Goods and Services tax regime, CNBC-TV18 reported. Karnataka, Punjab and West Bengal asked Centre to provide the likely loss estimation and expressed concerns over revenue protection, the report said.

The channel said Telangana and Sikkim may also have expressed similar apprehensions.

GST Council Meeting live: MSME registration soon to be done in three days

New measures would make registration for MSMEs possible within three days , which takes multiple weeks at present, sources told Moneycontrol.

GST Council Meeting Live: Big relief for taxpayers as health insurance, life-saving drugs to get cheaper

In a big relief for taxpayers, the GST Council is likely to agree to cut rates on insurance premiums, making policy covers cheaper. The Council may also agree to cut rates for life-saving drugs, government sources said.

GST Council Meeting Live: Opposition-ruled states ask for compensation for revenue loss

India’s eight opposition ruled states have asked the Central government to compensate for the revenue loss that might happen if the proposal to rationalize the goods and services tax (GST) structure is passed in the ongoing GST Council meeting being held on September 3 and 4, sources told Moneycontrol.

The states are Himachal Pradesh, Jharkhand, Kerala, Punjab, Tamil Nadu, Telangana and West Bengal and Karnataka.

Refunds stuck for pharma, textiles, chemical, fertilizer industry to be fast-tracked

The GST Council agreed to clear refunds stuck under inverted duty structure for textiles, pharma,  chemical, fertilisers and other industries in seven days, CNBC-TV18 said citing sources.

GST Council Meeting Live: GST Council begins talks on rate rationalisation

The GST Council has begun its discussion on rates rationalisation and on proposals to cut levies on life and and health insurance premiums, CNBC-TV18 reported.

GST Council Meeting Live: Insurance talks focus on rate rationalisation; Notifications expected by third week of September

Insurance discussions underway with focus on rate rationalisation.

Rate notifications likely by the third week of September.

GST Council Meeting Live: GST Council proposes to bring in automatic return filing, CNBC-TV18 reports

GST Council Proposes To Bring In Automatic Return Filing

GST Council Proposal To Reduce Compliance Issues Under Discussion

Alert: Ease Of Compliance Is One Of The 4-Pillar Strategies Pointed Out In GST 2.0 Vision

GST Council Currently Discussing Challenges In Registration & Refunds

GST Council Meeting Live: What's happening in EV segment

Leading electric vehicle makers — including Tata Motors, Mahindra & Mahindra, JSW MG Motor, BYD, Mercedes-Benz, BMW, and the newly arrived Tesla — may soon face a major hurdle in sales, according to a Reuters report. The upcoming GST Council meeting is expected to take up a proposal to hike the tax rate on luxury EVs priced above Rs 20 lakh, raising it from the current 5% to 18%. The recommendation, put forward by the GST rationalisation group of ministers (GoM), has already sparked strong opposition from EV manufacturers, even though a final decision will only be made after the Council’s September 3–4 deliberations.

GST Council Meeting Live: Indian Beverage Association seeks GST relief on aerated drinks

The Indian Beverage Association has urged the Finance Ministry to reduce GST on aerated beverages to 18%, highlighting that the sector has attracted investments worth Rs 85,000 crore, contributes to job creation, and supports rural demand.

GST Council Meeting Live: Health and life insurance premiums in focus

The GoM has also proposed exempting health and life insurance premiums from GST. While this would be a major relief for policyholders, Telangana Deputy Chief Minister Mallu Bhatti Vikramarka warned that such an exemption could cost the exchequer nearly Rs 9,700 crore annually.

GST Council Meeting Live: Revenue loss a key concern

Bihar Deputy Chief Minister Samrat Choudhary confirmed that the GoM has endorsed the Centre’s dual-structure model of 5% and 18%. However, moving items from the 12% slab to 5% is projected to result in an annual revenue loss of about Rs 80,000 crore for both the Centre and states.

GST Council Meeting Live: Average GST rate may drop below 10%

Currently, the average GST incidence on goods is around 11.5%. With the proposed restructuring, this could fall to under 10%, offering broad-based relief to consumers.

GST Council Meeting Live: 175 items may get cheaper

If approved, the GoM’s proposal could bring GST cuts for nearly 175 products. These include processed foods, dry fruits such as almonds, packaged snacks, jams, ghee, butter, pickles, chutneys, murabba, as well as big-ticket items like automobiles, tractors, refrigerators, air conditioners, and other electronics.

GST Council Meeting Live: Dual-slab GST structure proposed

As per the Centre’s plan, cleared by the Group of Ministers (GoM) last month, GST will transition to a dual-rate structure. Most items in the 28% slab (excluding sin goods) would move to 18%, while goods in the 12% slab would drop to 5%. A 40% slab will remain in place for 6–7 sin and demerit goods.

GST Council Meeting Live: States back Centre’s proposal

“We support the Centre’s plan as it benefits the common man. Compensation for state revenue losses is less important than providing relief to citizens,” a state finance minister told Moneycontrol on Tuesday, requesting anonymity.

GST Council Meeting Live: Focus on rate rationalisation

Finance Minister Nirmala Sitharaman has highlighted that the two-day discussions will primarily address the long-pending issue of GST rate rationalisation — a move expected to bring down prices of both essential and premium goods.

GST Council Meeting Live: GST Council’s 56th meeting begins in Delhi

The 56th meeting of the GST Council starts today in New Delhi, with close watch from both consumers and industry players across India.