GST will be reduced on 375 items from September 22; Govt strict instructions to companies

GST Reduced: There is good news for consumers before the festivals. Union Finance Minister Nirmala Sitharaman has said that companies will have to pass on the benefit of GST rates reduction to the customers. She said that the central government is also working on a package to provide relief to exporters affected by US tariffs.

The purpose of GST reforms is to benefit the common man, farmers and small businessmen. The new rates will come into effect from September 22, which will boost consumption and the economy.

Government's big gift

Sitharaman said that GST reforms have been done on the instructions of Prime Minister Narendra Modi and their aim is to benefit the common man, farmers and small businessmen. She said that many companies have already announced reduction in prices. The government is also keeping an eye on the prices and MPs have also been asked to monitor the prices in their areas.

When will the new rates be implemented?

While new GST rates will be implemented from 22  September2025. This day is the beginning of Navratri, when festival shopping picks up across the country. The Finance Minister hopes that the tax cut on 375 items will boost consumption and the economy.

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Sitharaman assured that tax rates will not be changed frequently. However, some opposition-ruled states expressed apprehension of revenue loss in the GST Council meeting. On this, the Finance Minister said that the loss is not only to the states but also to the Center. But when money goes into the pockets of the people, the government cannot worry only about its earnings.

Consumers will save

Sitharaman said that this time most of the things are in the low tax bracket and now only 13 items are left in the 'luxury and sin goods' category. This will simplify the tax structure and consumers will save.

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Central Board of Indirect Taxes and Customs (CBIC) chairman Sanjay Kumar Agarwal said that companies will have to update their billing system immediately so that the new rates can be implemented from September 22. He clearly said that companies should not keep the benefits to themselves but pass on the benefits to the customers.

Government can take action

If any sector does not follow the rules, then the government will take action after talking to the concerned industry organizations. Especially for the insurance and auto sectors, clarification has been given that the customers will have to pass on the full benefit of the big relief they have received. At the same time, the tax burden on cigarettes, pan masala and tobacco is not going to decrease.