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GST reforms – Beginning of GST 2.0

Practice Area

GST/ INDIRECT TAX / GCC VAT

Published On

September 5, 2025

Authors

Rajarshi Dasgupta , Dimple Jogani , Debarun Chakraborty

Description

We are pleased to bring you a special edition of nota bene update covering the key deliberations and outcomes of the 56th GST Council Meeting, chaired by the Hon’ble Union Finance Minister on 3 September 2025.

This meeting introduced significant changes to GST rates and structures across multiple sectors, including Automobiles, FMCG, Food, Textiles, Cement, Healthcare, Insurance, Agriculture, Renewable Energy, and Hospitality. The Council has moved towards a simplified two-rate GST framework with 5% and 18% as the principal slabs, supplemented by a 40% demerit rate for specified goods. Inverted duty structures have been corrected, and exemptions/reductions have been extended to essential goods and services.

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