{"id":9358,"date":"2025-08-19T10:16:46","date_gmt":"2025-08-19T10:16:46","guid":{"rendered":"https:\/\/www.caindelhiindia.com\/blog\/?p=9358"},"modified":"2025-10-13T18:25:57","modified_gmt":"2025-10-13T18:25:57","slug":"indias-gst-overhaul-a-major-reset-by-diwali","status":"publish","type":"post","link":"https:\/\/www.caindelhiindia.com\/blog\/indias-gst-overhaul-a-major-reset-by-diwali\/","title":{"rendered":"India\u2019s GST Overhaul: A Major Reset by Diwali"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-8080\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2024\/10\/GST-bank-account-.jpg\" alt=\"GST bank account\" width=\"1280\" height=\"569\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2024\/10\/GST-bank-account-.jpg 1280w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2024\/10\/GST-bank-account--300x133.jpg 300w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2024\/10\/GST-bank-account--1024x455.jpg 1024w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2024\/10\/GST-bank-account--768x341.jpg 768w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2024\/10\/GST-bank-account--800x356.jpg 800w\" sizes=\"(max-width: 1280px) 100vw, 1280px\" \/><\/p>\n<p><strong>Diwali gift by PM Narendra Modi- India\u2019s Goods &amp; Services Tax Overhaul<\/strong><\/p>\n<p>A significant Goods and services Tax reform is underway, set to simplify India\u2019s indirect tax system with a 2 slab structure (5% and 18%), replacing the current four-tier framework. A special 40% \u201csin\/luxury\u201d rate will continue to apply to a select few high-end or demerit goods. This is being positioned as a \u201cDiwali gift\u201d by Prime Minister Narendra Modi, who announced the revamp in his Independence Day address. \u00a0What are the effect come after this announcement :<\/p>\n<ul>\n<li>Boost to consumption: Lower Goods and services Tax on essentials and aspirational goods is expected to inject fresh momentum into the economy\u2014especially households, which account for 60% of GDP.<\/li>\n<li>Market surge: Stock markets responded positively, with auto, cement, consumer goods, and insurance stocks rallying in anticipation of higher demand.<\/li>\n<li>Fiscal considerations: The reform could reduce government revenue by an estimated $20 billion annually, balanced by anticipated consumption gains and streamlined tax administration.<\/li>\n<li>40+ stocks expected to benefit from GST Reforms 2.0 span across auto, cement, FMCG, banking, and consumer durable sectors.<strong>\u00a0<\/strong><\/li>\n<\/ul>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69dff61438fbc\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69dff61438fbc\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.caindelhiindia.com\/blog\/indias-gst-overhaul-a-major-reset-by-diwali\/#What_Will_Change_%E2%80%93_as_Prime_Minister_Narendra_Modi_announces_as_Diwali_gift\" title=\"What Will Change \u2013 as Prime Minister Narendra Modi announces as Diwali gift?\">What Will Change \u2013 as Prime Minister Narendra Modi announces as Diwali gift?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.caindelhiindia.com\/blog\/indias-gst-overhaul-a-major-reset-by-diwali\/#Key_beneficiaries_are_mentioned_here_under\" title=\"Key beneficiaries are mentioned here under:\">Key beneficiaries are mentioned here under:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.caindelhiindia.com\/blog\/indias-gst-overhaul-a-major-reset-by-diwali\/#Summary_Table\" title=\"Summary Table\">Summary Table<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.caindelhiindia.com\/blog\/indias-gst-overhaul-a-major-reset-by-diwali\/#GST_Reforms_20_span_Implementation_Approval\" title=\"GST Reforms 2.0 span\u00a0Implementation &amp; Approval\u00a0\">GST Reforms 2.0 span\u00a0Implementation &amp; Approval\u00a0<\/a><\/li><\/ul><\/nav><\/div>\n<h3><span class=\"ez-toc-section\" id=\"What_Will_Change_%E2%80%93_as_Prime_Minister_Narendra_Modi_announces_as_Diwali_gift\"><\/span><span style=\"color: #000080;\"><strong>What Will Change \u2013 as Prime Minister Narendra Modi announces as Diwali gift?<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Nearly 99% of items currently under the 12% Goods and services Tax slab are set to drop to 5%.<\/li>\n<li>Around 90% of items from the 28% slab may move to 18%, including small cars, cement, ACs, TVs, and other electronics.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Key_beneficiaries_are_mentioned_here_under\"><\/span><span style=\"color: #000080;\"><strong>Key beneficiaries are mentioned here under:<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-9364\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2025\/08\/photo_2025-08-19_17-43-52.jpg\" alt=\"GST update on GST cut \" width=\"1131\" height=\"1131\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2025\/08\/photo_2025-08-19_17-43-52.jpg 780w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2025\/08\/photo_2025-08-19_17-43-52-300x300.jpg 300w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2025\/08\/photo_2025-08-19_17-43-52-150x150.jpg 150w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2025\/08\/photo_2025-08-19_17-43-52-768x768.jpg 768w\" sizes=\"(max-width: 1131px) 100vw, 1131px\" \/><\/p>\n<ul>\n<li>Key consumer segments\u2014snacks, packaged food, daily-use electronics, cement, and small cars are likely to become significantly cheaper,<\/li>\n<li>From 28% \u2192 18% Slab: If implemented, GST on air-conditioners, large TVs, and dishwashers will move into the lower slab.<\/li>\n<li>Insurance premiums (health and life) could see Goods and services Tax reduced to 5% or zero, making coverage more affordable.<\/li>\n<li>Auto &amp; Two-Wheelers (lower GST on small cars &amp; 2-wheelers) &#8211; Maruti Suzuki, Tata Motors, Mahindra &amp; Mahindra, Hero MotoCorp, Bajaj Auto, TVS Motor.<\/li>\n<li>Cement (rate cut from 28% \u2192 18%) like UltraTech Cement, Shree Cement, ACC, Ambuja Cements, Dalmia Bharat, Ramco Cement.<\/li>\n<li>FMCG (reduced GST on packaged food &amp; essentials) like Hindustan Unilever (HUL), ITC, Nestl\u00e9 India, Dabur, Britannia, Marico, Colgate-Palmolive<\/li>\n<li>Consumer Durables (ACs, TVs, electronics moving to lower slab) like Voltas, Blue Star, Whirlpool, Havells, Crompton Greaves, Dixon Technologies,<\/li>\n<li>Banking &amp; Financials (consumption-led credit growth) like HDFC Bank, ICICI Bank, SBI, Axis Bank, Kotak Mahindra Bank, Bajaj Finance<\/li>\n<li>Retail &amp; E-commerce like Avenue Supermarts (DMart), Trent, Aditya Birla Fashion &amp; Retail<\/li>\n<li data-start=\"261\" data-end=\"385\">\n<p data-start=\"263\" data-end=\"385\">Price Impact: Approx. 7\u20138% reduction in final prices (depending on base price, dealer margin, and state levies).<\/p>\n<\/li>\n<li data-start=\"386\" data-end=\"529\">\n<p data-start=\"388\" data-end=\"529\">Demand Boost: Likely to spur festive season sales, particularly in Tier-2 and Tier-3 cities where affordability has been a barrier.<\/p>\n<\/li>\n<li data-start=\"530\" data-end=\"623\">\n<p data-start=\"532\" data-end=\"623\">Premiumisation: Consumers may shift from entry-level products to mid\/high-end models.<\/p>\n<\/li>\n<li data-start=\"624\" data-end=\"793\">\n<p data-start=\"626\" data-end=\"793\">Industry Push: White goods manufacturers (AC, TV, dishwasher makers) have long lobbied for this cut, citing low penetration in India compared to global averages.<\/p>\n<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Summary_Table\"><\/span><span style=\"color: #000080;\"><strong>Summary Table<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<table style=\"height: 342px;\" width=\"861\">\n<thead>\n<tr>\n<td>Aspect<\/td>\n<td>Details<\/td>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>New GST Slabs<\/td>\n<td>5% (everyday goods) &amp; 18% (standard); 40% for select sin\/luxury items.<\/td>\n<\/tr>\n<tr>\n<td>Key Savings<\/td>\n<td>Cement, small cars, ACs, electronics, packaged goods, insurance.<\/td>\n<\/tr>\n<tr>\n<td>Expected Impact<\/td>\n<td>Higher consumption, market rally, some revenue trade-offs.<\/td>\n<\/tr>\n<tr>\n<td>Timeline<\/td>\n<td>Rollout by October\/Diwali; pending GST Council approval.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><span class=\"ez-toc-section\" id=\"GST_Reforms_20_span_Implementation_Approval\"><\/span><span style=\"color: #000080;\">GST Reforms 2.0 span\u00a0<strong>Implementation &amp; Approval\u00a0<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>The formal proposal has been submitted to the Goods and services Tax Council, with the goal of enabling implementation before Diwali (likely in October 2025).\u00a0Both the Centre and state governments recognize the need for cooperative federalism to balance revenue and reform objective.<\/li>\n<li>Analysts expect higher consumption demand post-reforms, boosting volumes for autos, cement, FMCG, and consumer goods. Banks &amp; NBFCs stand to gain from increased retail lending. &amp; The move is seen as a short-term consumption booster and a medium-term tax simplification reform<\/li>\n<li data-start=\"827\" data-end=\"952\">\n<p data-start=\"829\" data-end=\"952\">Companies may absorb part of the benefit to improve margins instead of fully reducing MRP. Rising raw material costs (steel, semiconductors, freight) may offset some relief. The government will need to balance revenue loss vs. consumption push.<\/p>\n<\/li>\n<\/ul>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-9498\" src=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2025\/08\/GST-RATE-CUTS-FOR-THE-MIDDLE-CLASS-FROM-22ND-SEPTEMBER.jpg\" alt=\"GST RATE CUTS FOR THE MIDDLE CLASS FROM 22ND SEPTEMBER\" width=\"1280\" height=\"1280\" srcset=\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2025\/08\/GST-RATE-CUTS-FOR-THE-MIDDLE-CLASS-FROM-22ND-SEPTEMBER.jpg 1280w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2025\/08\/GST-RATE-CUTS-FOR-THE-MIDDLE-CLASS-FROM-22ND-SEPTEMBER-300x300.jpg 300w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2025\/08\/GST-RATE-CUTS-FOR-THE-MIDDLE-CLASS-FROM-22ND-SEPTEMBER-1024x1024.jpg 1024w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2025\/08\/GST-RATE-CUTS-FOR-THE-MIDDLE-CLASS-FROM-22ND-SEPTEMBER-150x150.jpg 150w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2025\/08\/GST-RATE-CUTS-FOR-THE-MIDDLE-CLASS-FROM-22ND-SEPTEMBER-768x768.jpg 768w, https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2025\/08\/GST-RATE-CUTS-FOR-THE-MIDDLE-CLASS-FROM-22ND-SEPTEMBER-800x800.jpg 800w\" sizes=\"(max-width: 1280px) 100vw, 1280px\" \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Diwali gift by PM Narendra Modi- India\u2019s Goods &amp; Services Tax Overhaul A significant Goods and services Tax reform is underway, set to simplify India\u2019s indirect tax system with a 2 slab structure (5% and 18%), replacing the current four-tier framework. A special 40% \u201csin\/luxury\u201d rate will continue to apply to a select few high-end &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[144],"tags":[1205],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/9358"}],"collection":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/comments?post=9358"}],"version-history":[{"count":6,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/9358\/revisions"}],"predecessor-version":[{"id":9500,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/9358\/revisions\/9500"}],"wp:attachment":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/media?parent=9358"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/categories?post=9358"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/tags?post=9358"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}