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GST Council Okays Tax Cuts on TVs, Small Cars, and a Host of Consumer Goods; New Rates From 22 September

The GST Council's tax revision cuts rates on essentials and services to 5% and 18%, aiming to ease compliance and boost consumption, with phased rollout starting September 22, 2025.

  • On September 3, 2025 the GST Council approved a two-slab 5% and 18% tax structure, effective from September 22, 2025 in India.
  • Phased sequencing was chosen to meet compensation cess obligations while easing transition, aiming to rationalise indirect taxes, reduce compliance burdens, and extend relief to households and the middle class, with tobacco and related products kept at existing rates until loans clear.
  • Consumer electronics and household appliances will see rate cuts to 18%, with air conditioners, televisions over 32 inches, and dishwashers moving from 28%, and a television worth Rs 40,000 saving about Rs 4,000 in GST.
  • Market strategists flagged both upside for consumption and a modest fiscal impact, with brokerages expecting FMCG companies and Maruti Suzuki to benefit as reforms add 30 bps to GDP and widen deficit by around 20 bps.
  • CBIC will implement 90% provisional refunds using analytics, while GST on solar cells and modules drops to 5%, boosting renewable energy adoption and project growth.
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Live Mint broke the news in New Delhi, India on Wednesday, September 3, 2025.
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