Thu Sep 04 04:26:54 UTC 2025: **FOR IMMEDIATE RELEASE**

**GST Overhaul Sparks Market Rally, Promises Relief for Indian Consumers**

**New Delhi, September 4, 2025** – India’s stock market surged today following the GST Council’s landmark decision to revamp the Goods and Services Tax (GST) structure. The move, hailed as a “phenomenal milestone” by industry leaders, promises to simplify compliance, reduce litigation, and provide much-needed predictability for businesses and consumers.

Benchmark equity indices Sensex and Nifty soared in early trading, with the Sensex jumping 888.96 points to 81,456.67 and the Nifty surging 265.7 points to 24,980.75.

The revamped GST system, primarily based on two rates of 5% and 18%, will take effect on September 22nd for most items, according to Union Finance Minister Nirmala Sitharaman. A 40% “special rate” will be levied on sin goods such as tobacco and luxury items like large cars, yachts, and helicopters.

The changes will lead to lower taxes on common household items, from roti and paratha to hair oil, ice cream, and televisions. Individual health and life insurance will also be exempt from GST.

“This move on GST reforms is a phenomenal milestone,” said CII Director General Chandrajit Banerjee. “By lowering rates on everyday items and critical inputs, the reforms provide immediate relief to families and strengthen the foundation for growth.”

The GST Council’s decision, made during its 56th meeting, follows a proposal from the central government to simplify the tax structure. The move is expected to benefit the common man, the middle class, farmers, and the health sector.

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