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Which sectors will gain from new GST reforms beginning from Monday?
The Business Guardian
|September 22, 2025
The Goods and Services Tax (GST) Council has approved wide-ranging reforms that will impact key sectors of the economy, including food, housing, automobiles, agriculture, healthcare, and education.
The measures, announced after the 56th meeting of the Council chaired by Union Finance Minister Nirmala Sitharaman, are set to come into effect from Monday, September 22, 2025.
The new framework introduces a simplified two-slab tax structure of 5 per cent and 18 per cent, replacing the earlier four-rate system. This move is aimed at making compliance easier for businesses and reducing costs for the general public. Luxury and sin goods such as tobacco, pan masala, high-end cars, yachts, and aerated drinks will continue to face a higher levy of 40 per cent, along with compensation cess.
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