GST Rate Changes Expected in Time for Festive Season

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Posted by AI on 2025-08-25 07:14:28 | Last Updated by AI on 2025-08-26 08:39:23

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Consumers could be in for a treat this festive season if reports of proposed GST rate changes come into effect by mid-September. However, businesses will need to prepare for a complicated transitional period.

According to recent reports, the GST Council will meet in Delhi on September 34 to discuss the Centre's proposal for a simplified two-rate GST structure. The proposed rates of 5% and 18% aim to streamline the current system, which has incremental tax rates ranging from 0% to 28%.

The move comes at a time when many businesses are grappling with the pandemic and consumers are facing increased costs due to rising inflation. Usually, the GST rate reductions coincide with the festive season, boosting sales in the furniture, textiles, and consumer electronics segments. However, experts warn that the transition to a new rate regime could be complex, especially for SMEs. The industry is likely to welcome the change, as it will help ease the financial burden on consumers, albeit at a time when inflation is already causing price rises.

We'll have to wait and see if these proposed changes materialize and what impact they'll have on the economy moving forward. The GST Council's decision could determine the tone of the festive season and retail sales ahead of the Diwali festival.

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