Goods and Services Tax

Sitharaman meets GST GoMs; explains necessity of tax reforms
GST
Dated:- 20-8-2025
PTI
New Delhi, Aug 20 (PTI) Finance Minister Nirmala Sitharaman on Wednesday presented to GoMs from states her government's plans for sweeping reforms in the GST regime that involves slashing tax rates and easing compliance burden for businesses.
The GoMs on rate rationalisation, insurance taxation and compensation cess will over two days deliberate on the Centre's 'next-gen' GST reforms under which tax will be levied at 5 and 18 per cent rates. A special 40 per cent rate has been proposed on 5-7 items, including sin goods.
GST is currently levied at 5, 12, 18 and 28 per cent. While food and essential items are either at nil or 5 per cent rate

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st 21.
As per an SBI Research report, the proposal, if implemented, could result in revenue loss of about Rs 85,000 crore a year. For the current fiscal, the loss to revenue is estimated at Rs 45,000 crore assuming the new tax rates are implemented from October 1.
The Centre's proposal once approved by the GoMs will be placed before the GST Council, comprising ministers from Centre and all states, in its meeting next month. Prime Minister Narendra Modi has announced rollout of the GST reforms by Diwali.
The SBI Research report estimated that the effective weighted average GST rate came down from 14.4 per cent at the time of inception to 11.6 per cent in September 2019. Given the current rationalisation of rates, the effective weighted

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Rupee appreciates 26 paise to close at 87.13 against US dollar
GST
Dated:- 19-8-2025
PTI
Mumbai, Aug 19 (PTI) The rupee appreciated 26 paise to close at 87.13 against the US dollar on Tuesday, supported by optimism over GST restructuring and positive domestic equity markets.
Forex traders said rupee is expected to trade with a positive bias as easing worries over additional tariffs by the US boosted market sentiments after the meeting between US President Donald Trump and Russian President Vladimir Putin.
At the interbank foreign exchange market, the rupee opened at 87.24 against the US dollar, touched an intraday low of 87.31 and a high of 86.92, and settled at 87.13, registering a gain of 26 paise over its previous close.

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emerit goods.
The proposed two-slab regime, if approved by the GST Council, will replace the current four slabs in the Goods and Services Tax (GST) regime, doing away with the 12 per cent and 28 per cent slabs.
“We expect the rupee to trade with a positive bias on upbeat domestic market sentiments due to GST rationalisation and fading trade tariff concerns. Falling crude oil prices and overall weakness in the greenback may also support the rupee,” Chaudhary said.
However, increased demand of dollar by importers may cap sharp gains. Traders may take cues from building permits and housing starts data from the US. USD-INR spot price is expected to trade in a range of 86.70 to 87.40, Chaudhary said.
According to Dilip Parmar, Senior Res

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Cabinet approves bill to regulate online gaming platforms; real money games may face ban
GST
Dated:- 19-8-2025
PTI
New Delhi, Aug 19 (PTI) Union Cabinet has approved a bill related to promotion and regulation of online gaming, and the government is likely to bar platforms offering any online money gaming service, a source said on Tuesday.
The bill is likely to be tabled in Parliament on Wednesday, the source added.
“The Cabinet has approved the bill to regulate online gaming platforms that involve real money. The government is trying to table the bill in Parliament on Wednesday,” the source said on condition of anonymity.
The bill has taken into account significant mental health issues among users of online games, particul

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7, Head Digital Works, Junglee Games and others challenging the ban imposed by the Tamil Nadu government.
The court rejected arguments of the real money gaming firms challenging jurisdiction of the state to regulate digital platforms as well as their argument to differentiate “games of chance” from the “game of skills”.
The Tamil Nadu government, citing an expert committee report, said that online games involving real money have posed serious mental and physical health risks to the citizens, including suicides by some, in the state.
The court upheld that the state has full competence to pass legislation to govern matters affecting public health and rejected arguments challenging its power to ban game of skills involving real money.

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Section 83(1) limits provisional attachments; renewal beyond one year under Section 83(2) is invalid as exceeding executive power
Case-Laws
GST
SC held that the respondent lacked authority to issue subsequent provisional attachment orders under sub-section (1) of Section 83 after the initial provisional attachment had ceased by efflux of one year under sub-section (2); permitting renewal would render sub-section (2) otiose and exceed executive power by effectively supplanting statutory prescription. The Court reaffirmed that executive measures may supplement but cannot supplant statutory law and that draconian attachment powers must be construed so as to preserve legislative intent. The impugned orders dated 13 Nov and 18 Dec 2024 were declared invalid, the appeal was allowed, and the appellant's bank accounts ordered defreezed and made operable upon production of this judgment.
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Stay of recovery and pre-deposit under Section 161 CGST dismissed; petitioner to file undertaking and comply with Section 112(8)
Case-Laws
GST
The HC dismissed the petitioner's writ seeking stay of recovery and pre-deposit under section 161 of the CGST Act, holding that established CBIC guidelines govern recovery where the first appeal has been disposed of until the Appellate Tribunal is operational, leaving no substantive relief. The petitioner was granted liberty to comply with the CBIC circular by filing an undertaking with the jurisdictional proper officer undertaking to file an appeal before the Appellate Tribunal when it comes into operation in accordance with section 112 timelines, and to make the statutory pre-deposit under section 112(8) within 15 days of receipt of this order. Petition disposed.
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Issuing summons not 'initiation of proceedings' under Section 6(2)(b) – formal start requires service of show cause notice
Case-Laws
GST
SC held that issuance of summons does not amount to the “initiation of any proceedings” under Section 6(2)(b) of the CGST Act; formal initiation occurs upon service of a show cause notice delineating the subject matter. The Court construed “subject matter” as the specific tax liability, deficiency or obligation framed in adjudicatory proceedings and held that overlapping or investigative acts (summons, search, seizure) do not ipso facto create identical subject matter attracting the bar in Section 6(2)(b). Section 6(2)(a) requires a proper officer issuing an order under the CGST Act to communicate a corresponding order to the State/UT counterpart to prevent multiplicity of proceedings. Petition disposed.
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Refunds for GST on ocean freight (CIF imports) maintainable despite Section 54 time bar after notifications voided
Case-Laws
GST
The HC held that refund claims for GST paid on ocean freight (CIF imports) consequent to the invalidation of Notifications Nos.8 & 10/2017 are maintainable notwithstanding the statutory period under Section 54, because the Supreme Court's judgment declaring those notifications void operates retrospectively absent an express prospective application. The court noted the doctrine of prospective overruling applies only where the Supreme Court so directs and found no such direction. Reliance on prior HC precedent considering similar facts was endorsed. Consequently, the impugned orders rejecting the refund applications as time-barred were set aside and the petition allowed, directing consideration of the refund claims on merits.
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Petitioner may seek GST registration restoration under Section 29(2)(c) by complying with proviso to sub-rule (4) Rule 22
Case-Laws
GST
The HC disposed the writ petition and directed that the petitioner, whose GST registration was cancelled under Section 29(2)(c) for non-filing of returns for six months, may seek restoration by approaching the duly empowered officer within two months. If the petitioner furnishes all pending returns and makes full payment of tax, interest and late fees as required by the proviso to sub-rule (4) of Rule 22, the officer may drop proceedings and pass an appropriate order in Form GST REG-20. The Court observed cancellation under Section 29(2)(c) has serious civil consequences and left restoration to the statutory procedure and discretion of the competent officer upon compliance.
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Writ petition dismissed for unexplained 11-month delay and laches; challenge to GST adjudication barred, note Section 73(10)
Case-Laws
GST
The HC dismissed the petitioner's writ petition for relief against an adjudication order under the GST Act, holding the challenge barred by delay and laches. The court found the petitioner failed to explain an approximately 11-month delay in seeking writ relief against an order dated 21 August 2024 and declined to exercise discretionary writ jurisdiction, notwithstanding that Section 73(10) limits adjudication timeframes. The HC observed the availability of alternative statutory remedies under the GST regime and directed that factual and legal disputes concerning understatement in GSTR-3B vis-à-vis GSTR-1 be agitated before the competent adjudicating authority. Petition dismissed; no interference granted.
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Retrospective GST registration cancellation set aside for noncompliance with Rule 10A CGST Rules and Section 29(2)
Case-Laws
GST
The HC set aside the retrospective cancellation of the petitioner's GST registration for noncompliance with Rule 10A CGST Rules and for lack of a reasoned order under Section 29(2), holding that retrospective revocation requires a show-cause notice contemplating such effect and a reasoned application of mind. The court directed that the cancellation shall be effective only from the date of issuance of the SCN, namely 6 August 2024, while permitting the revenue to initiate further proceedings if it intends to pursue retrospective cancellation in accordance with law. The petition is disposed of.
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Writ dismissed after taxpayer's unequivocal admission of wrongful input tax credit; procedural lapses not fatal; s.50(3) interest
Case-Laws
GST
The HC dismissed the writ petition, holding that notwithstanding procedural objections including alleged violation of natural justice, an unreasoned and unsigned order and breaches of Rule 26(3) and Rule 142(1) of the BGST/CGST Rules, the impugned order emanated from the petitioner's unequivocal admission of wrongfully availing and utilising input tax credit for 2017-18. The court found no substantive prejudice requiring judicial interference: the petitioner had filed a reply and no mandatory personal hearing omission vitiated the outcome. The Proper Officer merely raised a demand for interest under s.50(3) of the BGST Act, 2017; no penalty was imposed. Exercise of writ jurisdiction was declined and the petition was dismissed.
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Seized goods released after invoice and wedding card proved legitimacy; Section 129(1)(a) penalty payment ordered within three weeks
Case-Laws
GST
HC held that the invoice produced in favour of the petitioner and corroborative documentary evidence (wedding card) sufficiently established the legitimacy of the seized goods; the State/Department failed to impugn the invoice or the marriage fact. The December 31, 2018 Circular was held applicable; the detention and seizure could not be sustained. The impugned order dated July 9, 2025 was quashed and set aside. Authorities are directed to undertake the statutory exercise under Section 129(1)(a) of the Uttar Pradesh Goods and Services Tax Act, 2017 within three weeks and to release the goods to the petitioner upon payment of the penalty prescribed under that provision. Petition disposed of.
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Set aside order rejecting refund of unutilized input tax credit for zero-rated exports; refund to be processed with interest
Case-Laws
GST
The HC set aside the impugned order rejecting the petitioner's refund claim of unutilized input tax credit for zero-rated exports, holding the rejection unsustainable where shipping bills dated from 13 Sept 2021 and customs records corroborated export transactions despite the LUT being filed on 26 Aug 2021. The court directed the respondent to process and credit the petitioner's refund with statutory interest within two weeks, and further ordered that if the refund is not credited by 3 Sept 2025, interest at 12% per annum shall be payable to the petitioner. Petition allowed; impugned order dated 14 Nov 2024 quashed.
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Matter remitted to Commissioner for reconsideration of Electronic Credit Ledger blockage under Rule 86A, CGST Rules, 2017
Case-Laws
GST
The HC remitted the matter to the Commissioner, CGST, Ghaziabad, directing reconsideration of the Electronic Credit Ledger blockage effected under Rule 86A, CGST Rules, 2017, on grounds implicating principles of natural justice and the requirement of a pre-decisional hearing. The petitioner is ordered to file a reply/objection within one week from the judgment. A personal hearing is fixed for 25 August 2025 at 11:00 AM before the Commissioner. The Commissioner is directed to pass a reasoned, expeditious order preferably within one week of the hearing. The petition is disposed of, without adjudicating the framed legal questions, for fresh decision in accordance with law.
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Rupee appreciated 40 paise to close at 86.99 against US dollar
GST
Dated:- 19-8-2025
PTI
Mumbai, Aug 19 (PTI) The rupee appreciated 40 paise to close at 86.99 (provisional) against the US dollar on Tuesday, supported by optimism over GST restructuring and positive domestic equity markets.
Forex traders said rupee is expected to trade with a positive bias as easing worries over additional tariffs by the US boosted market sentiments after the meeting between US President Donald Trump and Russian President Vladimir Putin.
At the interbank foreign exchange market, the rupee opened at 87.24 against the US dollar, touched an intraday low of 87.31 and a high of 86.92, and settled at 86.99 (provisional), registering a gain of 40 pai

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r cent top bracket for 5-7 demerit goods.
The proposed two-slab regime, if approved by the GST Council, will replace the current four slabs in the Goods and Services Tax (GST) regime, doing away with the 12 per cent and 28 per cent slabs.
“We expect the rupee to trade with a positive bias on upbeat domestic market sentiments due to GST rationalisation and fading trade tariff concerns. Falling crude oil prices and overall weakness in the greenback may also support the rupee,” Chaudhary said.
However, increased demand of dollar by importers may cap sharp gains. Traders may take cues from building permits and housing starts data from the US. USD-INR spot price is expected to trade in a range of 86.70 to 87.40, Chaudhary said.
Meanwhile

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Stock markets rally for 4th day; Sensex climbs nearly 371 points on GST reform bid
GST
Dated:- 19-8-2025
PTI
Mumbai, Aug 19 (PTI) Benchmark stock indices Sensex and Nifty advanced on Tuesday, marking their fourth consecutive day of gains, mainly driven by Reliance Industries and Tata Motors.
Rising for the fourth trading day in a row, the 30-share BSE Sensex edged higher by 370.64 points or 0.46 per cent to settle at 81,644.39. During the day, it jumped 482.13 points or 0.59 per cent to 81,755.88.
The 50-share NSE Nifty climbed 103.70 points or 0.42 per cent to 24,980.65.
Optimism prevailed in the market, buoyed by plans for big bang reforms in the GST regime by Diwali and easing geopolitical worries, analysts said.
Among Se

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Stock markets continue to rally on GST reforms bid
GST
Dated:- 19-8-2025
PTI
Mumbai, Aug 19 (PTI) Equity benchmark indices climbed in early trade on Tuesday, extending their previous day's sharp rally, as optimism prevailed in the market buoyed by plans for big bang reforms in the GST regime by Diwali.
The 30-share BSE Sensex climbed 203.44 points to 81,477.19 in early trade. The 50-share NSE Nifty went up by 53.4 points to 24,930.35.
From the Sensex firms, Reliance Industries, Bharti Airtel, Adani Ports, NTPC, Titan and Infosys were the major gainers.
However, Bajaj Finance, Bharat Electronics, Mahindra & Mahindra and HCL Tech were among the laggards.
“The policy initiatives from the government on the GST front with indicat

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HIGHLIGHTS
GST
Dated:- 18-8-2025
PTI
New Delhi, Aug 18 (PTI) Following are the top stories at 9 pm: NATION DEL86 OPPN LD EC
Opposition parties mull impeachment of CEC, accuse him of acting like BJP spokesperson New Delhi: Opposition parties on Monday accused the Election Commission of failing to discharge its constitutional duty of ensuring a free and fair electoral system, and did not rule out moving an impeachment motion against Chief Election Commissioner Gyanesh Kumar, whom they alleged was acting like a “BJP spokesperson”.
DEL69 PM-LD PUTIN
Russian President Putin dials PM Modi; briefs him on Alaska summit New Delhi: Prime Minister Narendra Modi on Monday conveyed to President Vladimir Putin India's consistent position for a peaceful resolution of the Ukraine conflict when the Russian leader apprised him on the summit talks he held with US President Donald Trump.
DEL100 SINOINDIA-WANG-LD JAISHANKAR
Differences must not become disputes, nor compet

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ongress leader Rahul Gandhi on Monday said the Special Intensive Revision (SIR) of electoral rolls is a “new weapon” for “vote chori” and vowed to protect the “one person, one vote” principle by stopping “vote theft”.
DEL80 VP CANDIDATE-LD PM
NDA's vice-presidential nominee reaches Delhi; meets PM Modi, other leaders New Delhi: Maharashtra Governor C P Radhakrishnan arrived in the national capital on Monday and met leaders of the BJP-led National Democratic Alliance, including Prime Minister Narendra Modi, a day after he was named as its vice-presidential candidate.
DEL71 JK-CLOUDBURST-LD OPERATION
Two more bodies recovered in cloudburst-hit J-KÂ’s Kishtwar, death toll rises to 63 Chisoti (JK): Two more bodies were recovered from the debris in this cloudburst-hit village in Jammu and KashmirÂ’s Kishtwar district, taking the death toll in the natural calamity to 63, officials said, as a large-scale search continued for the fifth day on Monday despite intermittent rains.

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ng to minor offences under different laws with a view to promote ease of living and improve business climate.
DEL97 UP-LD SOLDIER ASSAULT
Soldier assaulted at UP toll plaza, Army condemns; six arrested, NHAI slaps Rs 20 lakh fine on operator Meerut/New Delhi: An Army jawan returning to duty after leave was allegedly assaulted by toll plaza employees in Uttar Pradesh's Meerut district, prompting the arrest of six people, a hefty penalty and blacklisting proceedings against the toll operator by NHAI and a strong condemnation from the Indian Army.
MDS18 TL-ECI-LD CM
'Vote Chori': Telangana CM slams ECI for asking affidavit from Rahul Gandhi Hyderabad: Telangana Chief Minister A Revanth Reddy on Monday hit out at the Election Commission of India for seeking an affidavit from Congress leader Rahul Gandhi on the issue of “vote chori”, claiming the poll body “failed” to respond to the questions raised by the Leader of Opposition in the Lok Sabha.
PAR28 LS-LD SPACE
India

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's proposal for sweeping GST reforms that will slash tax rates and lead to reduction in prices of common use items.
LEGAL LGD33 SC-ELECTION
Courts shouldn't rush to invalidate elections: SC New Delhi, Aug 18 (PTI) The Supreme Court has said courts should not rush to invalidate elections by adopting a “highly pedantic” approach just because a returned candidate didn't disclose certain information about assets, unless it influences the poll's outcome.
LGD28 SC-MP-2NDLD SUICIDE
'Not necessary perpetrator intended ex-MP dies by suicide': SC rejects son's plea to restore FIR New Delhi: The Supreme Court on Monday refused to restore an FIR against nine persons, including Praful Khoda Patel, administrator of the Union Territories of Dadra and Nagar Haveli, Daman and Diu, for allegedly abetting the suicide of former MP Mohan Delkar in 2021.
LGD22 SC-WB-EX-MINISTER
Cash-for-jobs case: SC grants bail to ex-WB minister Partha Chatterjee with rider New Delhi: The Supreme

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Rupee rises 20 paise to close at 87.39 against US dollar
GST
Dated:- 18-8-2025
PTI
New Delhi, Aug 18 (PTI) The rupee appreciated 20 paise to close at 87.39 against the US dollar on Monday, supported by strong domestic equities.
Forex traders said the Indian rupee traded on the positive territory on the GST reforms that Prime Minister Narendra Modi recommended in his August 15 address to the nation.
Forex traders said the uncertainty over trade tariffs issue between India and the US is likely to keep market participants cautious.
At the interbank foreign exchange market, the rupee opened at 87.46 against the US dollar, and touched an intraday low of 87.48 and a high of 87.33 and settled at 87.39, registering a gain of 20 pa

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cent, plus a special 40 per cent top bracket for 5-7 demerit goods.
The proposed two-slab regime, if approved by the GST Council, will replace the current four slabs in the Goods and Services Tax (GST) regime, doing away with the 12 per cent and 28 per cent slabs.
“Rupee gained today (Monday)… after the GST tax cuts announced by PM Modi and fading global risk factors after the Trump-Putin meeting. The RBI has been actively selling dollars as in the previous week the reserves fell about USD 10 billion,” Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said.
“The market is also expecting that the additional 25 per cent levy may go away once a peace deal is agreed upon between Ukraine and Russ

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Sitharaman to attend GoM meeting on Aug 20, explain next-gen GST reforms
GST
Dated:- 18-8-2025
PTI
New Delhi, Aug 18 (PTI) Finance Minister Nirmala Sitharaman will attend a crucial meeting of a state ministerial panel on August 20 to put forth the Centre's proposal for sweeping GST reforms that will slash tax rates and lead to reduction in prices of common use items.
The two-day meeting of the Group of Ministers (GoM) on GST rate rationalisation is scheduled on August 20-21 here, sources said.
The meet will deliberate on the Centre's proposal for GST reforms of reducing the number of tax slabs in Goods and Services Tax (GST) to two 5 and 18 per cent, and a 40 per cent special rate on a select few items.
Sources said apart

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nce premiums were being worked out by a GoM to give relief to the common man.
The GST Council had earlier set up three separate GoMs on the three issues.
While Bihar Deputy Chief Minister Samrat Choudhary is the convenor of the GoM on rate rationalisation and health and life insurance, Minister of State for Finance Pankaj Chaudhary is the convenor of the GoM on compensation cess.
The Centre has proposed two-slab structure of 5 and 18 per cent classifying items under the category of 'merit' and 'standard' and the broad principle followed in the classification is to reduce tax burden for middle class, MSMEs, and the farm sector.
The proposed 40 per cent slab, the highest permissible tax rate under the GST law, will be only for 5-7 ite

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Prime Minister Shri Narendra Modi, on the occasion of 79th Independence Day, highlights how Goods and Services Tax (GST) is a significant reform which has benefited the nation
GST
Dated:- 18-8-2025

To build an 'Atmanirbhar Bharat', the Central Government is proposing significant reforms in GST, focused on 3 pillars, of structural reforms, rate rationalisation, and ease of living
Key areas identified for next-generation reforms include rationalisation of tax rates to benefit all sections of society, especially the common man, women, students, middle class, and farmers
Reforms will also seek to reduce classification-related disputes, correcting inverted duty structures in specific sectors, ensuring greater rate stability, and f

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Government has sent its proposal on GST rate rationalisation and reforms to the Group of Ministers (GoM) constituted by the GST Council to examine this issue.
Key areas identified for next-generation reforms include the rationalisation of tax rates to benefit all sections of society, especially the common man, women, students, middle class, and farmers.
Reforms will also seek to reduce classification-related disputes, correcting inverted duty structures in specific sectors, ensuring greater rate stability, and further enhancing ease of doing business. These measures would strengthen key economic sectors, stimulate economic activity, and enable sectoral expansion.
Key Pillars of the Centre's Proposed Reforms:
Pillar 1: Structural reform

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ability, boost consumption, and make essential and aspirational goods more accessible to a wider population.
* Reduction of slabs: Essentially move towards simple tax with 2 slabs – standard and merit. Special rates only for select few items.
* Compensation Cess: The end of compensation cess has created fiscal space, providing greater flexibility to rationalise and align tax rates within the GST framework for long-term sustainability.
Pillar 3: Ease of Living:
* Registration: seamless, technology-driven, and time-bound, especially for small businesses and startups.
* Return: Implement pre-filled returns, thus reducing manual intervention and eliminating mismatches.
* Refund: faster and automated proc

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Rupee rises 23 paise to close at 87.36 against US dollar
GST
Dated:- 18-8-2025
PTI
New Delhi, Aug 18 (PTI) The rupee appreciated 23 paise to close at 87.36 (provisional) against the US dollar on Monday, supported by strong domestic equities.
Forex traders said the Indian rupee traded on the positive territory on the GST reforms that Prime Minister Narendra Modi recommended in his August 15 address to the nation.
Forex traders said the uncertainty over trade tariffs issue between India and the US is likely to keep market participants cautious.
At the interbank foreign exchange market, the rupee opened at 87.46 against the US dollar, and touched an intraday low of 87.48 and a high of 87.33 and settled at 87.36 (provisional),

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bs of 5 per cent and 18 per cent, plus a special 40 per cent top bracket for 5-7 demerit goods.
The proposed two-slab regime, if approved by the GST Council, will replace the current four slabs in the Goods and Services Tax (GST) regime, doing away with the 12 per cent and 28 per cent slabs.
Meanwhile, Brent crude prices rose 0.70 per cent to USD 66.31 per barrel in futures trade.
Investors will monitor Federal Reserve Chair Jerome Powell's comments at Jackson Hole this week for clues on the path of interest rate cuts in its next meeting in September, traders said.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.14 per cent to 97.98.
On the domestic equity market front,

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Sensex jumps 676 pts, Nifty up 1 pc as GST reform bid sparks rally
GST
Dated:- 18-8-2025
PTI
Mumbai, Aug 18 (PTI) Stock markets rose sharply on Monday, with Sensex closing higher by 676 points and Nifty climbing 1 per cent on heavy buying in auto and consumer durables stocks, buoyed by plans for big bang reforms in the GST regime by Diwali.
The 30-share BSE Sensex jumped 676.09 points or 0.84 per cent to settle at 81,273.75. During the day, it zoomed by 1,168.11 points or 1.44 per cent to 81,765.77.
The 50-share NSE Nifty climbed 245.65 points or 1 per cent to end at 24,876.95. Intra-day, it surged 390.7 points or 1.58 per cent to 25,022.
Global rating agency S&P upgrading India's sovereign credit rating also boosted the s

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ministerial panel on August 20 and 21 in the national capital, according to sources.
Prime Minister Narendra Modi had announced the proposal to reform the GST law in his Independence Day speech on August 15 from the ramparts of the Red Fort.
In Asian markets, Japan's Nikkei 225 index and Shanghai's SSE Composite index settled in positive territory while South Korea's Kospi and Hong Kong's Hang Seng ended lower.
European markets were trading in negative territory.
The US markets ended mostly lower on Friday.
Global oil benchmark Brent crude climbed 0.62 per cent up to USD 66.25 a barrel.
Foreign Institutional Investors (FIIs) offloaded equities worth Rs 1,926.76 crore on Thursday, according to exchange data.
On Thursday, the Se

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Centre, States equal stakeholder in GST, revenues shared equally: Govt source
GST
Dated:- 18-8-2025
PTI
New Delhi, Aug 18 (PTI) Amid concerns about the revenue impact of the Centre's pro-middle-class 'Next Gen GST' with a proposed two-slab structure, government sources clarified that the Centre is an equal partner in revenue sharing with the states and that its proposal anticipates a revenue boost over time, driven by increased consumption.
Under the current Goods and Services Tax (GST) framework, revenues are shared equally between the Centre and the states. Additionally, 41 per cent of the Centre's share of the divisible tax pool is allocated to states as per the Finance Commission's recommendations.
“Centre has equal conc

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to the Group of Ministers on GST rate rationalisation a 2-tier rate structure of 5 per cent and 18 per cent for ‘merit’ and ‘standard’ goods and services, and a 40 per cent rate for about 5-7 goods. The proposal entails doing away with the current 12 and 28 per cent tax slabs.
Currently, states have exclusive taxation rights over land and petroleum products. Also, the Centre, under a special assistance scheme, is giving a 50-year interest-free loan for capital expenditure to states.
Besides, the health and education cess and other cess collected by the Centre go towards funding state development and welfare needs through various central government schemes and initiatives.
Compensation cess, which goes entirely to the states, accounts

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GST rate rejig: Sitharaman to address Aug 20 GoM meet to put forth Centre's rate cut proposal
GST
Dated:- 18-8-2025
PTI
New Delhi, Aug 18 (PTI) Finance Minister Nirmala Sitharaman will on Wednesday address a crucial meeting of a group of ministers of states as she makes a case for the sweeping GST reforms that will slash tax rates and lead to reduction in prices of common use items.
The Centre has proposed a 2-tier GST structure of 5 and 18 per cent, besides a 40 per cent special rate on a select few items to the GoM on GST rate rationalisation.
The proposal, which entails removing the current 12 and 28 per cent tax slabs, will be discussed at the 2-day meeting of the state ministerial panel on August 20 and 21 here in the n

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ying items under the category of 'merit' and 'standard' and the broad principle followed in the classification is to reduce tax burden for middle class, MSMEs, and the farm sector.
The proposed 40 per cent slab, the highest permissible tax rate under the GST law, will be only for about 5-7 items, including demerit goods like pan masala, tobacco and online gaming.
Goods and Services Tax (GST) is currently levied at 5, 12, 18 and 28 per cent. While food and essential items are either at nil or 5 per cent, luxury and demerit goods are in 28 per cent slab, with a cess on top of it.
If the Centre's proposal is accepted by the GoM, it would be placed before the GST Council, chaired by Sitharaman and comprising finance ministers from all sta

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