Wed Sep 03 16:40:00 UTC 2025: **Headline: India Overhauls GST Rates, Aiming to Benefit Citizens and Boost Economy**
**New Delhi:** The central government has announced a major overhaul of the Goods and Services Tax (GST) rates, reducing them to just two primary levels: 5% and 12%. The decision, which eliminates the 12% and 28% slabs, was unanimously approved by the GST Council.
Prime Minister Narendra Modi expressed his satisfaction with the move, stating it will directly benefit the common man, farmers, and the middle class. In a post on X, formerly known as Twitter, Modi referenced his Independence Day speech where he outlined the intention to implement next-generation GST reforms.
The Prime Minister emphasized that the government had prepared a comprehensive proposal to streamline GST rates and improve procedures, with the goal of easing the lives of ordinary citizens and strengthening the economy. He added that the collective agreement by the GST Council on the proposed rate reductions and reforms would benefit various segments of society, including MSMEs, women, and youth.
The Federation of Indian Export Organisations (FIEO) welcomed the GST Council’s decisions, particularly the commitment to settle refunds within seven days, calling it a step in the right direction to alleviate cash flow pressures on exporters. FIEO emphasized the importance of timely and predictable refunds for maintaining India’s export competitiveness, especially amid global demand uncertainties.
Experts in the pharmaceutical industry believe that the GST reforms agreed upon at the 56th GST Council meeting will promote the affordable availability of life-saving drugs.
First Piper 