GST Overhaul: Key Winners and Losers Revealed in India’s Tax Shakeup
New Delhi, September 4, 2025 — India’s Finance Minister Nirmala Sitharaman has introduced a massive GST overhaul, slashing multiple tax brackets into just three—5%, 18%, and a new 40% “sin and luxury” slab—effective September 22. The move includes reductions on everyday consumer goods, electronics, vehicles, and agricultural inputs. (Source: Reuters)
Who Benefits
- Household essentials like packaged food, toothpaste, and medicines now taxed at 5%, lowering consumer costs.
- Consumer appliances, TVs, ACs, hybrid vehicles including SUVs, leverage eased tax rates—set to boost festive season purchases.
- Insurance products—especially life and health—now GST-free, benefitting firms and policyholders.
Who Pays More or Stays the Same
- Apparel priced above ₹2,500 moved from 12% to 18%, impacting mid-range clothing brands.
- Luxury/premium items—including cars by Mercedes, BMW, Lexus—face a 40% tax slab, narrowing margins on high-end goods.
- “Sin” goods like tobacco and soft drinks retain higher tax rates, with minimal relief expected.
Why It Matters
Economists estimate a ₹48,000 crore (~$5.5 billion) reduction in government revenue—less than earlier forecasts of ₹1–1.8 lakh crore—as the move aims to stimulate demand while keeping inflation and subsidies in check.
Source: Reuters (Read Original)
Labels: GST Reform • Tax Overhaul • Consumer Goods • Economic Policy
Tags: #GSTReform #TaxChanges #IndiaEconomy #ConsumerImpact
Disclaimer: This summary reflects reporting by Reuters. Jammu News Portal does not guarantee accuracy or completeness of external reports.
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