Archive · 15 Sep 2025
GST Reforms: Lower Taxes on Food and Textiles Announced
The Indian government is changing taxes (GST) to make things cheaper.
They lowered taxes on food, like milk and bread, to help families.
They also reduced taxes on things like packaging materials and trucks, which should make it cheaper for businesses to deliver goods.
Additionally, the tax on manmade fibers and yarns was reduced.
These changes are meant to help both consumers and businesses, especially exporters facing high US import duties.
These actions are designed to boost the economy and support various industries.
GST reforms aim to reduce costs and boost affordability for consumers.
Essential food items like bread and milk are exempt from GST.
Taxes on packaging materials and transport vehicles have been reduced.
GST rates on manmade fibers and yarns were lowered to 5%.
The reforms aim to improve competitiveness, especially for exporters facing US tariffs.
- Who
- Government and Industry Stakeholders
- What
- Reduced GST rates on food, packaging, textiles, and transport vehicles
- When
- Reforms to take effect on September 22
- Where
- India
- Why
- To boost affordability, industry growth, and competitiveness
- GST Rate on Manmade Fibers
- Reduced from 18% to 5%
- GST Rate on Manmade Yarns
- Reduced from 12% to 5%
- Effective Date of Changes
- September 22nd
- US Import Duty on Indian Products
- 50%
- Beneficiaries of Reforms
- Consumers, Industry, Exporters
