GST Reset 2025 News

GST rate cut aims to spark growth, even as the government balances fragile revenues and deficit goals.

Apparel retailers warn that new GST slabs may hinder growth, especially for mid-income consumers buying branded clothing. While higher rates apply to items over ₹2,500, reductions for lower-priced apparel and footwear are seen as beneficial for overall consumer demand.

The GST rationalization has left a thorny issue unresolved: Several opposition-ruled states have warned of revenue losses from the tax cuts and renewed demands for compensation from the Centre.

With the GST exemption on individual insurance premiums, consumers may see reduced costs, but insurers will face increased operational expenses. What the experts say about long-term impact

Sectors such as textiles and footwear, which employ millions in small and medium units, have been facing severe cost pressures and are thus key beneficiaries of the GST cuts.

The recent GST rate changes in India bring promising prospects for the automobile sector, particularly benefitting small car manufacturers like Maruti Suzuki. With a significant reduction in GST for small cars, the market is poised for a revival.

The August-to-December period is typically a bonanza for e-commerce and quick commerce portals, with order volumes spiking 30-50% above the annual average.

Restaurants will benefit from cut in taxes on crucial inputs including food and utensils, while hotels with rooms priced below ₹7,500 will be taxed at 5%. However, without input tax credit relief, this relief may be mixed.

GST cuts on small cars and two-wheelers slash prices of petrol, diesel and hybrid vehicles, widening the gap with EVs and raising questions over India’s clean mobility transition.

While the GST Council has cut the tax on two-wheelers under 350cc from 28% to 18%, it has raised the effective tax on premium bikes (above 350cc) from 31% to 40%. Eicher and Bajaj account for about 90% of the premium market, but one is better placed to tackle the tax hike.