Page 28 - NIS English 01-15 October, 2025

COVER STORY | New GST Reforms of New India

Daily Essentials The GST has proven
to be a landmark
become Cheaper, Bring achievement in India’s

Smile To Middle-Class economic landscape.
It has reduced the

The reduction in GST rates on essential items will number of taxes, the
make everyday goods cheaper and ease the burden compliance burden,
on household budgets. The lower rates will boost and the overall
the purchasing power of the average consumer and tax burden on the
also encourage production…
common citizen,
n Ultra-high temperature (UHT) milk, pre-packaged and while significantly
labeled paneer/chhena, and chapati and paratha are now increasing
GST-free, down from a 5% slab.

n Toothbrushes , toothpaste, talcum powder, hair oil, shaving transparency,
cream, aftershave lotion, toilet soap are now under the 5% compliance, and tax
GST rate, instead of 18%. revenue collection.
n Most household items, including tooth powder, candles, Narendra Modi,
feeding bottles, cloth bags, umbrellas, sewing machines,
bicycles, bamboo furniture, combs, hairpins, diapers, water Prime Minister
bottles, and solar water heaters, are now subject to a 5% GST
rate, down from 12%.
n Air conditioners, dishwashers, projectors, set-top boxes, and
motorcycles with an engine capacity of 350cc or less are now
under the 18% GST rate, instead of 28%.
Lakhs in 2017 to over 1.5 Crores today.
The GST rate on, preserved tomatoes and Annual collections have exceeded Rs
mushrooms, frozen vegetables, fruits, nuts, 22 lakh crore in FY 2024-25. GST collec-
fruit peels, and other plant parts preserved tions now average around Rs 1.8 lakh
in sugar, jams, and fruit jellies has been crore per month, far exceeding levels
reduced from 12% to 5%. at the time of this historic reform. A
Deloitte survey shows that 85% of
The GST on kitchenware businesses, including MSMEs, are
has been reduced from satisfied with GST, proving that India
12% to 5%. Similarly, the can be more modernized by taking
Footwear priced upto Rs. 2500 businesses and consumers along on
instead of upto Rs.1000 will now GST rate on chocolates this historic journey.
be at 5% GST while existing rate has been reduced from an The next phase of reforms further
will continue to apply to footwear average of 18% to 5%. simplifies the GST system and puts
priced above Rs 2500 instead of the public at its heart of policy making.
Rs.1000 Prices of essential items like food
and medicines, and electronic goods,
have been significantly reduced. Tax
loopholes are being addressed, and

26 NEW INDIA SAMACHAR || October 1-15, 2025