GST Council meeting LIVE: Industry bodies hail two-rate slab and other reforms

2 days ago 1

Stock market shares jump more than 1% at the open

Updated - September 04, 2025 10:04 am IST

Representational image of people shopping for essential goods at a supermarket in Amritsar | Photo Credit: Reuters

A day after the Goods and Services Tax (GST) Council decided to revamp the tax structure into a primarily two-rate system and carried out other reforms, industry bodies said the clarity will ease compliance, reduce litigation, and give businesses and consumers much-needed predictability.

Union Finance Minister Nirmala Sitharaman that the decisions would come into effect from September 22 for most items.

ALSO READ: Small cars, bikes up to 350 cc to get cheaper as GST reforms kick in

Apart from the two rates of 5% and 18%, the new GST system would also include a 40% “special rate” on sin goods such as tobacco and luxury items such as large cars, yachts, and helicopters.

Stock market shares jumped more than 1% at the open on Thursday.

Follow the live updates here:

September 04, 2025 10:02
GST Bonanza fuels stock markets rally; Sensex jumps nearly 900 points
Benchmark equity indices Sensex and Nifty surged in early trade on Thursday as investors became cheerful after the GST Council approved a complete overhaul of the tangled Goods and Services Tax regime.
The 30-share BSE Sensex jumped 888.96 points to 81,456.67 in opening trade. The 50-share NSE Nifty surged 265.7 points to 24,980.75.
Common use items from roti/paratha to hair oil, ice creams and TVs will cost less, while tax incidence on personal health and life insurance will be brought down to nil after the all-powerful GST Council on Wednesday approved a complete overhaul of the tangled Goods and Services Tax (GST) regime.
-PTI
September 04, 2025 09:58
GST reforms to provide relief to families, ease compliance for businesses: India Inc
India Inc on Thursday hailed the GST Council’s “forward-looking decisions” — moving to two rates of 5 per cent and 18 per cent from 22 September, simplifying refunds and MSME procedures, and exempting individual life and health insurance from the indirect tax regime.
Industry bodies said the clarity will ease compliance, reduce litigation, and give businesses and consumers much-needed predictability.
CII Director General Chandrajit Banerjee said, “This move on GST reforms is a phenomenal milestone. By lowering rates on everyday items and critical inputs, the reforms provide immediate relief to families and strengthen the foundation for growth”.
-PTI
September 04, 2025 09:57
GST Council approves two-rate tax slab effective September 22
The Goods and Services Tax (GST) Council, during its 56th meeting, decided to revamp the tax structure into a primarily two-rate system as proposed by the Central government, Union Finance Minister Nirmala Sitharaman announced on Wednesday.
She added that the decisions would come into effect from September 22 for most items. Only tobacco and tobacco-related products will move to the new structure at a date to be specified by the Finance Minister.
Apart from the two rates of 5% and 18%, the new GST system would also include a 40% “special rate” on sin goods such as tobacco and luxury items such as large cars, yachts, and helicopters.
GST Council approves two-rate tax slab effective September 22
GST Council revamps tax into two-rate structure, reducing rates for common man, middle class, farmers, and health-related sectors.