MUMBAI: The proposed GST reforms, announced by the prime minister to be rolled out by Diwali, halving the current four-rate tax structure into two-tier regime a

The Indian government's proposed Goods and Services Tax (GST) restructuring plan could make air conditioners, cars, and televisions more affordable for consumers.

Impact of the rate rationalisation on the insurance industry depends on whether the rate cut is implemented with or without the input tax credit.

The move has reportedly divided the centre and some states, who are seeking a “significant share” in the additional taxation on tobacco products to recover potential revenue loss

Ministers from various states converged in the capital Wednesday to discuss the Centre’s proposal to overhaul the GST structure. Finance Minister Nirmala Sitharaman addressed the Group of Ministers (GoMs) constituted by the GST Council on compensation cess,

As part of the upcoming GST overhaul, the government plans to consolidate existing tax slabs into two primary rates, 5% and 18%, phasing out the current 12% and 28% brackets. However, sin goods are likely to attract a higher rate of 40%, according to finance ministry sources.

India's proposal to rationalise goods and services tax is a "huge reform", which is bound to have good outcomes, RC Bhargava, chairman of the country's top carmaker Maruti Suzuki , told Reuters on Monday.

Act, 2025, introduces changes, including a new "track and trace" mechanism for certain goods, penalties for non-compliance, and amendments to input tax credit and appeal

GST, or Goods and Services Tax, is a tax that customers have to bear when they buy any goods or services, such as food, clothes, electronics, items of daily needs, transportation, travel, etc.

India adopted the GST in 2017, sweeping in more than a dozen domestic state taxes in a bid to unify the economy on the principle of "one nation, one tax, one market". It was hailed as the biggest tax reform since independence from Britain in 1947.

Splitting the Goods and Services Tax in two, and taxing goods at a higher rate, would help to reflect the extra environmental damage done by products that are bought and later thrown in the rubbish.