September 7, 2025

Get ready for a GST shake-up that’s all heart and no hassle! Sanjay Kumar Agarwal, chairman of the Central Board of Indirect Taxes and Customs (CBIC), spilled the beans in an exclusive chat with TOI about the massive GST reforms rolled out by the government. "This transformational reform could take place because this exercise has been done from the heart," said Agarwal. The main goal? To cut down on confusing tax battles, simplify GST with fewer tax rates, and mostly, slash the tax on everyday goods to help the common man save more money. The reforms are a triple delight, easing life for buyers, stabilizing business, and supporting employment masses. Wondering if companies will really pass on these sweet rate cuts? Agarwal is firm: "The companies have to immediately take steps to update their systems so that the new rates are reflected." From September 22, new GST rates will automatically pop up on bills. More than that, Agarwal insists firms must not keep any benefits to themselves but pass everything to the consumers. The department is closely watching price changes to step in if needed. "But, we are otherwise confident that industries on their own will pass on the benefits," he adds. What if some companies play hardball? Agarwal has a plan. Complaints against any sector will be forwarded to their industry bodies who must act responsibly. He adds that the simplified GST structure with just two rates will clear up all confusion about who owes what. Some worries from the insurance and car sectors? Agarwal explains that while insurance firms lose input tax credit (ITC) on exempt policies, the big relief they get in cash payment terms should fully benefit policyholders. For car dealers, compensation cess credits can only be used to pay cess, not GST—so clarity is key here. And what about sin goods like tobacco? The hefty tax rate of 40% on cigarettes and related items isn't going anywhere anytime soon. The current duties and compensation cess will stick around until the loan repayments are done, likely till December. After that, taxes remain high through other measures. "Nobody will say that tax incidence on sin goods should come down," Agarwal emphatically states. In short, this GST makeover is here to make life simpler, prices fairer, and ensure consumers feel the benefit of every rupee saved. Gear up for a new tax era where fairness and clarity rule the roost!

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Tags: Gst reforms, Sanjay kumar agarwal, Tax rate cuts, Consumer benefits, Cbic, Compensation cess,