"Advocating for Current GST Transformations by the Modi Administration...," - Proclaims CBIC Chairman Sanjay Kumar on Next-Generation GST Reforms
In a significant move, the Modi Government has implemented next-generation GST reforms, which are being hailed as the need of the hour by Sanjay Kumar, the Chairman of the Central Board of Indirect Taxes and Customs (CBIC). These reforms aim to simplify the tax structure, ease compliance, and benefit both consumers and businesses in India.
The reforms, referred to as 'GST 2' or next-gen GST, include reducing GST rates on essentials like food items, healthcare, insurance, and consumer goods. The majority of goods will fall into two slabs of 5% and 18%, with a 40% rate for luxury/sin goods. This move is expected to lower bills for consumers and support farmers, MSMEs, and lower-middle-class consumers.
Moreover, the reforms aim to reduce classification disputes, stimulate demand, and ease compliance with technology-based registration and pre-filled returns. The changes are effective from September 22, 2025.
The GST Council, the governing body for Goods and Services Tax in India, has also implemented next-generation reforms. These reforms have been instrumental in decoding the impact on the auto sector, as explained by Maruti Suzuki's RC Bhargava in an exclusive video.
Meanwhile, in the stock market, a stock has returned an impressive 2442% in 5 years, and a first-ever STOCK SPLIT and DIVIDEND have been declared with a record date in Sep. The specific stocks to buy after the GST rate cut have also been suggested, including Hero MotoCorp, Trent, Maruti, HDFC Life, and more.
However, the specific changes that these GST reforms bring for consumers and businesses have not been detailed in this article. For a comprehensive understanding, we recommend following the CBIC for the latest Business News, Stock Markets, IPO Companies News, and Breaking News on ET Now, where ET Now Live TV covers all big and small Share Market News.
On a separate note, Google was fined USD 381 million in France due to a specific reason, and Anil Ambani faces fresh trouble as a bank declares RCom loan accounts as fraud.
Lastly, the GST reforms have been introduced to benefit rural India with the Bima Vistaar Yojana, a new insurance scheme offering five benefits.
As the implementation date of the next-generation GST reforms approaches, it is clear that these changes are set to revolutionise the tax landscape in India, making it more consumer- and business-friendly.
