September 18, 2025

New Delhi is buzzing with good news! Finance Minister Nirmala Sitharaman revealed on Wednesday that India's fresh GST reforms will inject a whopping ₹2 lakh crore into the economy. How? By slashing taxes on many everyday goods! Right now, 99% of items in the 12% tax slab will move down to a relaxed 5%. Meanwhile, 90% of products in the 28% slab drop to a friendlier 18% rate. She said this will leave people with more money in hand — “People will have cash in hand.” This fresh GST setup has only two tax slabs now – just 5% and 18%. The goal is clear: simplify taxes and pump up consumption. The new rates kick in from September 22, so get ready to enjoy cheaper prices soon! The government promises many household staples will get cheaper. Think milk and dairy products, packed foods, toiletries, gadgets for your home, two-wheelers, and even cars! The tax cut means your wallet will feel lighter without shrinking your needs. Especially for big-ticket stuff like ACs, TVs, and cars, this rate cut might just light up the demand from India’s eager and growing aspirational buyers. The GST Council approved this smart tax makeover earlier this month. Now, the government has officially notified these revised rates. But that’s not all – industry experts are busy too. Saurabh Agarwal, partner at EY, stressed, “As rate notifications are now being released, it is imperative for industries to align their ERP systems, pricing decisions and supply chain.” He added, “This strategic alignment is critical to ensure a smooth implementation and, crucially, to guarantee that the benefits of this rate rationalisation are effectively passed on to the end consumer.” The Centre is keeping a hawk’s eye on prices to make sure companies don’t just pocket these savings but truly pass them on to shoppers. Just last week, tax officers met industry leaders and ordered field teams to monitor prices of over 50 common items to prevent any unfair price holds. To help everyone sail smoothly through these changes, the government has released detailed FAQs and clarifications. So, get ready for an exciting and wallet-friendly ride with the new GST regime!

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Tags: Gst reforms, Tax cut, Nirmala sitharaman, Consumer benefits, Gst rate change, Indian economy,