Stakeholders in the arecanut sector have asked the Government to bring down GST on copper sulphate, which is used as a fungicide in many plantation crops, to 5 per cent from the existing 18 per cent.
Deutsche Bank said while the GST rates rationalization can come as a useful offset to the tariff-related downside risks to growth. However, it also stated that it is too early to adjust its long-held 6.5 per cent year-on-year (y-o-y) growth forecast for FY26 and FY27.
The reduction in Goods and Services Tax on items such as cement, steel, marble, granite blocks, which are used in construction and housing sector has been received with tepid enthusiasm by the builder community, which feels that the government should have addressed the issue of input tax credit and provided incentives to boost affordable housing.
The reforms, dubbed GST 2.0, were positioned as a citizen-centric evolution aimed at simplifying taxation, reducing burdens on the common man, and fostering economic growth.
GST reforms proposal announced this week will be ‘transformational’ for India’s indirect tax system, CBIC chairman Sanjay Kumar Agarwal told ET in an interview.
Why was the cess paid initially?
Amid these sweeping changes, one question popped up again — where does popcorn fit in?
Hoteliers have been confused over a listing in the exercise to revamp the Goods and Services Tax (GST). While the announcement says Indian rotis, including parathas, will not attract any tax, many are asking why idli, dosa, puttu, idiyappam and other South Indian staples have not been exempted.
India, the world’s fastest growing major economy, is preparing to bear the brunt of US President Donald Trump’s trade war and 50% tariffs. In this backdrop, the Goods and Services Tax (GST) rate cuts couldn’t have come at a more opportune time.
The reduction in health insurance premiums is unlikely to match the 18% GST cut as insurers are expected to pass some of the costs arising from input taxes to customers.
