<\/span><\/h2>\nThe\u00a056th<\/sup>\u00a0meeting of the GST Council was held on\u00a03rd<\/sup>September, 2025\u00a0at\u00a0Sushma Swaraj Bhavan, New Delhi\u00a0under the chairpersonship of the Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman.\u00a0The GST Council\u00a0inter-alia\u00a0<\/em>made the recommendations relating to changes in GST tax rates,\u00a0provide relief to individuals, common man, aspirational middle class and\u00a0measures for facilitation of trade in GST.<\/p>\n<\/span>Next-Gen GST Reform: Ease of Living & Aatmanirbhar Bharat<\/strong><\/span><\/span><\/h3>\nThe Government of India has launched the Simplified GST Registration Scheme and Next-Gen GST Refund System, marking a historic reform under GST 2.0. Endorsed unanimously by the 56th GST Council, these reforms bring significant relief to farmers, MSMEs, women, youth, small traders, and the middle class, while advancing the twin visions of Ease of Living and Aatmanirbhar Bharat. The recommendations made by the 56th<\/sup>\u00a0GST Council are as below:<\/p>\n<\/span> Changes in GST Rates of Goods & Services<\/strong><\/span><\/span><\/h3>\n<\/span> Goods<\/strong><\/span><\/span><\/h4>\n\n- Rate Changes :\u00a0<\/strong><\/span>Detailed HSN-wise changes (Annexure I) and sector-wise changes (Annexure II).<\/li>\n
- Other Changes<\/strong><\/span>\n
\n- GST to be levied on Retail Sale Price (RSP) instead of transaction value for pan masala, gutkha, cigarettes, unmanufactured tobacco, chewing tobacco (like zarda)<\/em>.<\/li>\n
- Ad hoc IGST & compensation cess exemption granted on a new armoured sedan car imported by the President\u2019s Secretariat for the President of India.<\/li>\n<\/ul>\n<\/li>\n<\/ol>\n
Save Big on Daily Essentials<\/strong><\/span><\/p>\n\n- \n
\n- \n
\n- Hair oil, shampoo, soap, toothpaste, shaving cream \u2013 18% \u2192 5%<\/li>\n
- Butter, ghee, cheese, dairy spreads \u2013 12% \u2192 5%<\/li>\n
- Packaged namkeens, bhujia, mixtures \u2013 12% \u2192 5%<\/li>\n
- Utensils \u2013 12% \u2192 5%<\/li>\n
- Baby feeding bottles, napkins, diapers \u2013 12% \u2192 5%<\/li>\n
- Sewing machines & parts \u2013 12% \u2192 5%<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n
Automobiles Made Affordable<\/strong><\/span><\/p>\n\n- \n
\n- \n
\n- Petrol\/LPG\/CNG hybrid cars (\u22641200cc & \u22644000mm) \u2013 28% \u2192 18%<\/li>\n
- Diesel hybrids (\u22641500cc & \u22644000mm) \u2013 28% \u2192 18%<\/li>\n
- 3-wheeled vehicles \u2013 28% \u2192 18%<\/li>\n
- Motorcycles (\u2264350cc) \u2013 28% \u2192 18%<\/li>\n
- Goods transport vehicles \u2013 28% \u2192 18%<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n
Save on Electronic Appliances<\/strong><\/span><\/p>\n\n- \n
\n- \n
\n- Air conditioners \u2013 28% \u2192 18%<\/li>\n
- TVs (above 32″, including LED & LCD) \u2013 28% \u2192 18%<\/li>\n
- Monitors & projectors \u2013 28% \u2192 18%<\/li>\n
- Dishwashers \u2013 28% \u2192 18%<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n
Relief in Healthcare Sector<\/strong><\/span><\/p>\n\n- \n
\n- \n
\n- Health & life insurance \u2013 18% \u2192 Nil<\/li>\n
- Thermometers \u2013 12% \u2192 5%<\/li>\n
- Medical oxygen \u2013 12% \u2192 5%<\/li>\n
- Diagnostic kits, reagents \u2013 12% \u2192 5%<\/li>\n
- Glucometers & test strips \u2013 12% \u2192 5%<\/li>\n
- Corrective spectacles \u2013 12% \u2192 5%<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n
Uplifting Farmers & Agriculture<\/strong><\/span><\/p>\n\n- \n
\n- \n
\n- \n
\n- Tractor tyres & parts \u2013 18% \u2192 5%<\/li>\n
- Tractors \u2013 12% \u2192 5%<\/li>\n
- Bio-pesticides, micro-nutrients \u2013 12% \u2192 5%<\/li>\n
- Drip irrigation & sprinklers \u2013 12% \u2192 5%<\/li>\n
- Agricultural & forestry machinery \u2013 12% \u2192 5%<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n
Affordable Education<\/strong><\/span><\/p>\n\n- \n
\n- \n
\n- Maps, charts, globes \u2013 12% \u2192 Nil<\/li>\n
- Pencils, sharpeners, crayons, pastels \u2013 12% \u2192 Nil<\/li>\n
- Exercise books, notebooks \u2013 12% \u2192 Nil<\/li>\n
- Erasers \u2013 5% \u2192 Nil<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n
<\/span> Services<\/strong><\/span><\/span><\/h4>\n\n- \u00a0Rate Changes<\/span> :\u00a0<\/strong>Detailed HSN-wise (Annexure III) and sector-wise (Annexure IV) changes.<\/li>\n
- Other Changes<\/strong><\/span>\n
\n- Clarification: stand-alone restaurants<\/em> cannot classify themselves as \u2018specified premises\u2019; hence, they cannot opt for GST @ 18% with ITC.<\/li>\n
- GST valuation rules amended to align with changes in tax rate on lottery tickets.<\/li>\n<\/ul>\n<\/li>\n<\/ol>\n
<\/span>III. Implementation Timeline<\/strong><\/span><\/span><\/h3>\n\n- 22nd September 2025
\na) GST rate changes on services.
\nb) GST rate changes on goods (except tobacco & related products).<\/li>\n - Pan masala, gutkha, cigarettes, zarda, unmanufactured tobacco, bidi\n
\n- To continue at existing GST & cess rates until all compensation cess loan obligations are cleared.<\/li>\n
- Transition date to revised rates will be decided later by the Finance Minister.<\/li>\n<\/ul>\n<\/li>\n
- Refund Reforms\n
\n- CBIC to start 90% provisional refunds for inverted duty structure (risk-based, like zero-rated supplies), pending amendments in the CGST Act, 2017.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n
<\/span>IV Measures for Facilitation of Trade<\/strong><\/span><\/span><\/h3>\n\n- Process Reforms<\/strong><\/span><\/li>\n<\/ol>\n
\n- Several GST law & procedure simplifications (Annexure V).<\/li>\n
- Implementation dates to be notified separately.<\/li>\n<\/ul>\n
\n- Operationalisation of GSTAT<\/strong><\/span><\/li>\n<\/ol>\n
\n- Goods & Services Tax Appellate Tribunal (GSTAT) to start accepting appeals before end of September 2025.<\/li>\n
- Hearings to commence before December 2025.<\/li>\n
- Limitation date for backlog appeals: 30th June 2026.<\/li>\n
- Principal Bench will also act as National Appellate Authority for Advance Ruling (NAAAR).<\/li>\n<\/ul>\n
FAQs are also being issued for clarification of doubts. Expected outcome: Strengthened dispute resolution mechanism, consistency in advance rulings, improved taxpayer certainty, and ease of doing business.\u00a0This landmark reform reflects the visionary leadership of Hon\u2019ble PM Shri Narendra Modi Ji and Hon\u2019ble FM Smt. Nirmala Sitharaman Ji, ensuring that GST 2.0 is not just about taxation but about nation-building, citizen empowerment, and economic strengthening.<\/p>\n
<\/span>Comparison of Old and New GST Rates for Automobile Categories (2025 Update)<\/strong><\/span><\/span><\/h2>\n![\"Comparison](\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2025\/09\/Comparison-of-Old-and-New-GST-Rates-for-Various-Automobile-Categories.jpg\")
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\n
\n
\n\n\nCategory<\/strong><\/th>\nOld GST + Cess<\/strong><\/th>\nNew GST<\/strong><\/th>\nChange<\/strong><\/th>\n<\/tr>\n<\/thead>\n\n\n| Electric Vehicles<\/td>\n | 5% \u2192 5%<\/strong><\/td>\n| No change<\/td>\n | <\/td>\n<\/tr>\n | \n| Hydrogen Fuel Cell Vehicles<\/td>\n | 12% \u2192 5%<\/strong><\/td>\n| Reduced by 7%<\/td>\n | <\/td>\n<\/tr>\n | \n| Three-Wheeled Vehicles<\/td>\n | 28% \u2192 18%<\/strong><\/td>\n| Reduced by 10%<\/td>\n | <\/td>\n<\/tr>\n | \n| Two-Wheelers up to 350 cc<\/td>\n | 28% \u2192 18%<\/strong><\/td>\n| Reduced by 10%<\/td>\n | <\/td>\n<\/tr>\n | \n| Two-Wheelers above 350 cc<\/td>\n | 31% \u2192 40%<\/strong><\/td>\n| Increased by 9%<\/td>\n | <\/td>\n<\/tr>\n | \n| Passenger Cars (Petrol\/CNG\/LPG \u2264 1200 cc, \u2264 4 m)<\/td>\n | 29% \u2192 18%<\/strong><\/td>\n| Reduced by 11%<\/td>\n | <\/td>\n<\/tr>\n | \n| Passenger Cars (Diesel \u2264 1500 cc, \u2264 4 m)<\/td>\n | 31% \u2192 18%<\/strong><\/td>\n| Reduced by 13%<\/td>\n | <\/td>\n<\/tr>\n | \n| Passenger Cars (\u2264 1500 cc, > 4 m)<\/td>\n | 45% \u2192 40%<\/strong><\/td>\n| Reduced by 5%<\/td>\n | <\/td>\n<\/tr>\n | \n| Passenger Cars (> 1500 cc)<\/td>\n | 48% \u2192 40%<\/strong><\/td>\n| Reduced by 8%<\/td>\n | <\/td>\n<\/tr>\n | \n| SUVs (\u2265 4 m, > 1500 cc, \u2265 170 mm clearance)<\/td>\n | 50% \u2192 40%<\/strong><\/td>\n| Reduced by 10%<\/td>\n | <\/td>\n<\/tr>\n | \n| Hybrid Passenger Cars (\u2264 1200 cc petrol \/ \u2264 1500 cc diesel)<\/td>\n | 28% \u2192 18%<\/strong><\/td>\n| Reduced by 10%<\/td>\n | <\/td>\n<\/tr>\n | \n| Hybrid Passenger Cars (> 1200 cc petrol \/ > 1500 cc diesel)<\/td>\n | 43% \u2192 40%<\/strong><\/td>\n| Reduced by 3%<\/td>\n | <\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n\n- Strong relief for mass-market vehicles : Small petrol, diesel, and hybrid cars now taxed at 18%, down from 28\u201331%. This directly benefits hatchbacks, compact sedans, and entry-level hybrids.<\/li>\n
- Two-wheelers benefit moderately, except premium bikes (> 350 cc) which now attract a higher 40% GST.<\/li>\n
- Luxury and SUV segments see meaningful relief \u2014 total tax cut by ~10 percentage points, simplifying structure by removing compensation cess.<\/li>\n
- Green mobility promotion continues EVs retain the concessional 5% rate. & Hydrogen fuel cell vehicles reduced from 12% \u2192 5%.<\/li>\n
- Cess removal simplifies compliance \u2014 now only one clear GST rate per category instead of a dual rate system.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"
56th GST Council Meeting chaired by Union Finance Minister Smt. Nirmala Sitharaman held on 3rd September 2025, New Delhi. The\u00a056th\u00a0meeting of the GST Council was held on\u00a03rdSeptember, 2025\u00a0at\u00a0Sushma Swaraj Bhavan, New Delhi\u00a0under the chairpersonship of the Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman.\u00a0The GST Council\u00a0inter-alia\u00a0made the recommendations relating to changes in GST tax …<\/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":[918],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/9378"}],"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=9378"}],"version-history":[{"count":3,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/9378\/revisions"}],"predecessor-version":[{"id":9551,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/posts\/9378\/revisions\/9551"}],"wp:attachment":[{"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/media?parent=9378"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/categories?post=9378"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.caindelhiindia.com\/blog\/wp-json\/wp\/v2\/tags?post=9378"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}} | | | | | | | | | | | | | | | | |
![\"diwali](\"https:\/\/www.caindelhiindia.com\/blog\/wp-content\/uploads\/2025\/09\/diwali-gift.jpeg\")
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