Archive · 21 Aug 2025
India Proposes New GST Structure: Industry Weighs Impact
India is planning to make its Goods and Services Tax (GST) easier by simplifying the tax system.
The plan is to have three main tax rates: 5%, 18%, and 40%.
Experts and businesses like this because it makes things simpler.
However, some worry about how this might impact revenue for the government and if businesses will struggle with these changes.
The government is hoping to help consumers and make things more affordable, while making sure states can still collect enough tax revenue.
GoM recommended a simplified GST structure of 5%, 18%, and 40%.
Reforms aim to reduce complexity and boost consumption.
Industry experts are concerned about inverted duty structures.
The GST Council will discuss the recommendations in an upcoming meeting.
States are assessing potential revenue losses from the changes.
- Who
- Industry, tax experts, and the government.
- What
- Proposed simplified GST structure with 5%, 18%, and 40% rates.
- When
- Upcoming GST Council meeting.
- Where
- India
- Why
- To simplify taxes, reduce disputes, and drive consumption.
Expert Concerns
Government's Goals
Duty Structure Impact
Expert Concerns
Potential negative impact due to inverted duty structure
Government's Goals
Simplification of the tax system
Revenue and Economic Impacts
Expert Concerns
States worried about potential revenue losses.
Government's Goals
Boosting consumption and economic growth.
- Proposed GST Rates
- 5%, 18%, 40%
- Main Goal
- Reduce complexity, boost consumption
- Expert Concern
- Inverted Duty Structures
- Impact
- Potential benefits for consumers
- Key Stakeholders
- GST Council, States, Businesses
Sources
Standardise GST input slabs on healthcare at 5%, says industry body
Nil GST on insurance premiums: Zero rate may not make policies cheaper for individuals, say experts
Centre Proposes Scrapping GST On Life & Health Insurance Policies
Full GST waiver could push up costs: Insurers
Why is Nomura bullish on Maruti, M&M & TVS Motor ahead of GST? Big price cuts coming, but EVs may disappoint
Ministerial group in favour of removing GST on health, life insurance
Insurance companies caution: Zero GST could raise costs, erode tax credits; states worry if insurers would end up hiking premiums
GST exemption on health insurance, life insurance likely: How will it impact premiums?
Group of Ministers approves removal of 12% and 28% GST slabs, making goods cheaper
GST 2.0: Relief For Middle Class & Farmers, GST 2.0 Will Benefit Small Businesses Too
FHRAI seeks 5 pc GST with input tax credit for tourism sector
GST revamp 2025: Cheaper cement, steel likely — but will luxury housing costs rise?
Tax experts welcome proposed two-tier GST, but caution on inverted duty structure
India's Tax Cut Proposal Sparks Centre-State Fiscal Tensions
