• GST Council Introduces Two-Tier Regime from September 22
• GST Council reduces slabs to 5% and 18% from four rates, making essentials cheaper and boosting middle-class consumption from Sept 22, 2025.
• The 56th GST Council Meeting, introduced sweeping changes branded as “Next-Gen GST Reforms.” In what is being called a Diwali gift for the nation, the council cut tax rates across multiple sectors—daily essentials, agriculture, healthcare, automobiles, education, and household appliances—making life more affordable for citizens.
• Key highlights include reduced GST on hair oil, toothpaste, soaps, tractors, dairy products, medical insurance, oxygen, small cars, motorcycles, and air conditioners. Essential education materials such as maps, notebooks, and crayons have also become cheaper.
• Beyond tax cuts, the council unveiled structural reforms to simplify compliance—automatic GST registration within three working days and provisional refunds for zero-rated supplies and inverted duty structure cases.
• These measures are expected to boost consumption, strengthen MSMEs, support farmers, uplift healthcare access, and accelerate India’s vision of Aatmanirbhar Bharat.