The government has given a pre-diwali gift to the common people. In the meeting of the GST Council held on Wednesday 3 September, the government has decided to make many things that come in daily use cheaper. The general public will get direct benefit of these changes.
Gst new tax slab: In the 56th meeting of the GST Council, the government has given great relief to the common man before Diwali. Under this, now many things used to use everyday will become cheaper. These changes will be applicable from the first day of Navratri i.e. 22 September. In the question and answer, what and how much will he benefit for the common man in the new GST tax reforms?
Question No. 1- GST Council has approved which major changes in 2025?
Answer- The GST Council has reduced the GST slab and now mainly raised two rates. These are 5% and 18%. Apart from this, there will also be a special slab of 40% for luxury and harmful items. The last four slabs of 5%, 12%, 18% and 28% have now been simplicated from the new GST reform.
Also read: New GST RATE LIST: From soap-shampoo to ghee-peak, these items used daily will be cheap
Question No. 2- When will the new GST rates apply?
Answer- The new GST rates will usually be applicable from September 22, 2025. However, some items such as paan masala, gutkha, cigarettes and some tobacco products have a separate time limit.
Question number 3- Which items will come in special 40% GST slab?
Answer- 40% slab will apply to high level luxury cars, tobacco products (paan masala, gutkha, cigarette, chewing tobacco, bidi, etc.), selected transport and imported personal use items such as big cars, yacht etc.
Question No. 4- When will the new rate of GST be implemented on tobacco and products made from it?
Answer: Tobacco products such as gutkha, cigarette, bidi, paan masala etc. are currently commented with 28% GST, which can range from 5% to 290% according to different products. For example, 204% on gutkha and 71% cess on unprotected tobacco. The new 40% GST rate will be applied to these when all the debt of the cess will be repaid. Its final date Finance Minister and GST Council will decide together.
Question number 5- What are the changes in GST for hotel sector?
Answer- The declarior tariff system for hotels has been abolished and now GST will be imposed on the actual transaction value taken from customers. However, hotels with room rate more than Rs 7500 per day will cost 18% GST with full input tax credit (ITC).
Question number 6- How has GST improved for old cars?
Answer- A similar GST rate of 18% on margin price (selling price) will now apply to all old cars. Whether the engine or fuel type is anything. If there is loss, no GST will apply.
Question No. 7- What is necessary for registration for input service distributor (ISD)?
Answer- From April 1, 2025, business with multiple GST registrations under the same PAN must compulsorily obtain ISD registration to distribute input tax credit between branches and increase transparency.
Question number 8- Has there been any changes in filing GST returns?
GSTR-7 and GSTR-8 format will now require detailed invoice level TDS/TCS reporting. A sequential filing has been implemented to avoid leaving the tax period from November 1, 2024.
Question number 9- How much burden will increase on the government by reducing GST rates?
Answer- Reduce tax on daily use goods will increase the burden on the government in the initial stages. According to an estimate, this may cause a loss of Rs 85,000 crore to the government annually. However, Finance Minister Nirmala Sitharaman says that this loss will be compensated by the increase in consumption.
Question number 10- What will be the benefit of the common man from GST changes?
Answer- The general public will directly benefit due to everyday goods and food items being cheap. Apart from this, there are many benefits.
- 18% tax on health insurance for personal, family, and elderly has been removed. It will be cheaper to take insurance.
- The tax on cement has come down from 28% to 18%, which will reduce the cost of building the house.
- 33 essential medicines of cancer and serious diseases will now be tax-free, which will directly benefit the common people.
- TV, AC and other electronic items will now come into tax 28% to 18%, which will also reduce their prices.
- Small cars and bikes up to 350cc will now be taxed at 18% instead of 28%, which will also make it cheaper.
See also: There will be no GST on life and health insurance from 22 September, saving money