Section 130 Proceedings Not Allowed Based on Excess Stock Found Without Proper Verification Under GST Act

Section 130 Proceedings Not Allowed Based on Excess Stock Found Without Proper Verification Under GST ActCase-LawsGSTProceedings initiated under section 130 read with section 122 of the GST Act based solely on excess stock found during a survey, without a

Section 130 Proceedings Not Allowed Based on Excess Stock Found Without Proper Verification Under GST Act
Case-Laws
GST
Proceedings initiated under section 130 read with section 122 of the GST Act based solely on excess stock found during a survey, without actual verification or weightment, are impermissible. The HC held that the GST Act provides a specific mechanism under sections 73/74 for dealing with unrecorded goods, and thus section 130 cannot be invoked in such circumstances. Precedents from this HC and the SC affirm that excess stock discovered at survey does not warrant initiation of proceedings under section 130. Consequently, the impugned orders issued on this basis were quashed, and the petition was allowed, confirming that section 130 proceedings cannot be employed for excess stock findings during a survey.
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Section 130 proceedings cannot be initiated for excess stock; cases must follow Sections 73 or 74 under GST Act

Section 130 proceedings cannot be initiated for excess stock; cases must follow Sections 73 or 74 under GST ActCase-LawsGSTThe HC held that initiation of proceedings under section 130 read with section 122 of the GST Act based on excess stock found during

Section 130 proceedings cannot be initiated for excess stock; cases must follow Sections 73 or 74 under GST Act
Case-Laws
GST
The HC held that initiation of proceedings under section 130 read with section 122 of the GST Act based on excess stock found during a survey was improper. The Court reaffirmed that section 130 proceedings are not applicable for cases involving excess stock discrepancies, which must be addressed under sections 73 or 74 of the GST Act. Reliance was placed on precedent establishing that excess stock discovered during a survey cannot trigger section 130 proceedings. Consequently, the impugned orders initiating action under section 130 were quashed, and the petition was allowed, directing the authorities to proceed under the appropriate provisions for tax recovery and assessment.
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Writ Petition Dismissed Over Fraudulent ITC Claims; Court Urges Statutory Appeal for Detailed Review

Writ Petition Dismissed Over Fraudulent ITC Claims; Court Urges Statutory Appeal for Detailed ReviewCase-LawsGSTThe HC dismissed the writ petition challenging the impugned order alleging fraudulent availment of Input Tax Credit (ITC) by multiple parties.

Writ Petition Dismissed Over Fraudulent ITC Claims; Court Urges Statutory Appeal for Detailed Review
Case-Laws
GST
The HC dismissed the writ petition challenging the impugned order alleging fraudulent availment of Input Tax Credit (ITC) by multiple parties. The Court noted that the Petitioner's reply to the show cause notice (SCN) may not have been duly considered, raising a potential natural justice issue. However, given the complexity involving numerous transactions and multiple noticees, the Court held that detailed factual examination is inappropriate under writ jurisdiction. The Court emphasized that the Petitioner should pursue statutory appellate remedies instead of seeking relief via writ petition. Consequently, the petition was dismissed without adjudicating the merits of the alleged fraudulent ITC claims or penalties imposed.
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Petitioner held liable for fraudulent ITC claims over Rs. 50 crores; demands and penalties upheld under GST rules

Petitioner held liable for fraudulent ITC claims over Rs. 50 crores; demands and penalties upheld under GST rulesCase-LawsGSTThe HC dismissed the writ petitions filed by the petitioner challenging the demand for wrongful availment of ineligible ITC, inter

Petitioner held liable for fraudulent ITC claims over Rs. 50 crores; demands and penalties upheld under GST rules
Case-Laws
GST
The HC dismissed the writ petitions filed by the petitioner challenging the demand for wrongful availment of ineligible ITC, interest, and penalty arising from discrepancies between GSTR-1 and GSTR-3B returns. The petitioner, who voluntarily provided OTP access to a third party, facilitated the creation of multiple fraudulent GST registrations resulting in ITC claims exceeding Rs. 50 crores. The Court held that the petitioner cannot claim innocence given these facts and declined to conduct a factual inquiry into the misuse of ITC, directing that such investigations fall within the purview of police authorities. Consequently, the petitions were disposed of, upholding the impugned orders and affirming the demand for recovery of tax liabilities and associated penalties.
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HIGHLIGHTS

HIGHLIGHTSGSTDated:- 17-8-2025PTINew Delhi, Following are the stop stories at 9.20 pm: NATION DEL122 VP CANDIDATE-LD NDA
NDA picks Maharashtra Governor CP Radhakrishnan as vice-president candidate New Delhi: Maharashta Governor Chandrapuram

HIGHLIGHTS
GST
Dated:- 17-8-2025
PTI
New Delhi, Following are the stop stories at 9.20 pm: NATION DEL122 VP CANDIDATE-LD NDA
NDA picks Maharashtra Governor CP Radhakrishnan as vice-president candidate New Delhi: Maharashta Governor Chandrapuram Ponnusamy Radhakrishnan, a seasoned BJP leader from Tamil Nadu with an RSS background, was on Sunday named the vice-presidential candidate of the ruling National Democratic Alliance.
DEL123 RADHAKRISHNAN-PROFILE
Long-time RSS volunteer, former MP from TN and governor for multiple states is BJP's choice for VP post New Delhi: He became associated with RSS and Jan Sangh in his teens, won Lok Sabha elections twice from Coimbatore in the late 1990s and his supporters call him 'Modi of Tamil Nadu' Maharashtra Governor Chandrapuram Ponnusamy Radhakrishnan is the BJP and NDA's choice for the Vice President's post.
DEL104 EC-2NDLD BIHAR
Submit affidavit in 7 days to back 'vote chori' claims: CEC Gyanesh Kuma

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Narendra Modi during his two-day visit to India beginning Monday, according to the Ministry of External Affairs (MEA).
DEL20 JK-RAINS-3RDLD KATHUA
Cloudburst, landslide in J-KÂ’s Kathua; seven killed Jammu: Seven members of four families, including five children, were killed in two separate incidents of cloudburst and landslide in Kathua district of Jammu and Kashmir early Sunday, officials said.
DEL125 CONG-2NDLD EC
EC stands thoroughly exposed for incompetence, partisanship: Cong New Delhi: The Congress on Sunday alleged that the Election Commission stood “thoroughly exposed” not only for its “incompetence” but also for its “blatant partisanship”, soon after the chief election commissioner defended the SIR in Bihar and rejected as “baseless” the opposition party's allegations of “vote theft”.
DEL118 EC-BIHAR-MULTIPLE VOTERS
Persons holding multiple voter IDs due to migration, other issues: CEC Gyanesh Kumar New Delhi: Chief Election Commissioner Gyanesh K

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sion Road-II worth nearly Rs 11,000 crore to reduce traffic congestion in the national capital and its surrounding areas.
DEL44 ONOE-KHANNA
Ex-CJI Khanna to ONOE committee: Constitutional validity does not mean desirability New Delhi: Former chief justice of India Sanjeev Khanna has told a parliamentary committee scrutinising the simultaneous election bill that the constitutional validity of a proposal in no way amounts to a pronouncement upon the desirability or necessity of its provisions.
BUSINESS DEL16 BIZ-GST
Next-Gen GST step towards a single tax slab GST New Delhi: The proposed ‘Next Gen GST’ with sweeping reforms, lower tax rates, and just two slabs, aims to boost the economy amid tariff threats and set the stage for a single tax rate regime by the time India becomes a developed nation, government sources said.
FOREIGN FGN13 PAK-RAINS
Pak warns of more heavy rains as flash flood death toll hits 327 Peshawar: PakistanÂ’s weather department on

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Modi urges states to cooperate in implementing proposed GST reforms

Modi urges states to cooperate in implementing proposed GST reformsGSTDated:- 17-8-2025PTINew Delhi, Aug 17 (PTI) Prime Minister Narendra Modi on Sunday said the Centre has circulated the draft of the next-generation GST reforms among states and sought th

Modi urges states to cooperate in implementing proposed GST reforms
GST
Dated:- 17-8-2025
PTI
New Delhi, Aug 17 (PTI) Prime Minister Narendra Modi on Sunday said the Centre has circulated the draft of the next-generation GST reforms among states and sought their cooperation to implement the proposal before Diwali.
He said the reform in GST would benefit poor and middle-class people, as well as small and big businesses.
Addressing an event here after the inauguration of two expressways, the Prime Minister said the Centre intends to make the GST law simpler and revise tax rates.
Modi had announced the proposal to reform the GST law in his Independence Day speech on August 15 from the ramparts of Red Fort.
“For us, reform means

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Proposed GST rate tweaks on automobiles to end classification disputes

Proposed GST rate tweaks on automobiles to end classification disputesGSTDated:- 17-8-2025PTINew Delhi, Aug 17 (PTI) In upcoming sweeping reforms, the GST on automobiles – currently in the highest tax bracket – will be restructured to resolve classificati

Proposed GST rate tweaks on automobiles to end classification disputes
GST
Dated:- 17-8-2025
PTI
New Delhi, Aug 17 (PTI) In upcoming sweeping reforms, the GST on automobiles – currently in the highest tax bracket – will be restructured to resolve classification disputes related to engine capacity and vehicle size, ultimately benefiting the common man, according to government sources.
Presently, automobiles are taxed at 28 per cent, which is the highest GST slab. A compensation cess, ranging from 1 to 22 per cent, is levied on top of this rate, depending on the type of vehicle.
The total tax incidence on cars, depending on engine capacity and length, ranges from 29 per cent for small petrol cars to 50 per cent for SUVs.
Electr

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Next-Gen GST step towards a single tax slab GST

Next-Gen GST step towards a single tax slab GSTGSTDated:- 17-8-2025PTINew Delhi, Aug 17 (PTI) The proposed ‘Next Gen GST’ with sweeping reforms, lower tax rates, and just two slabs, aims to boost the economy amid tariff threats and set the stage for a sin

Next-Gen GST step towards a single tax slab GST
GST
Dated:- 17-8-2025
PTI
New Delhi, Aug 17 (PTI) The proposed ‘Next Gen GST’ with sweeping reforms, lower tax rates, and just two slabs, aims to boost the economy amid tariff threats and set the stage for a single tax rate regime by the time India becomes a developed nation, government sources said.
They said the proposed new GST regime, which slashes tax rates and assigns just two slabs of 5 per cent and 18 per cent, will boost the economy and also serve to mitigate tariff threats.
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.
Calling it the “next Gen GSTÂ’, a government official said, “It is a game changer reform. In the pantheon of economic reforms seen in India, it's right up there”. The officials spoke on the condition of anonymity.
Government sources said the new struc

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n the system.
Once the CentreÂ’s proposal is accepted by the Group of Ministers (GoM) and is approved by the GST Council, it will end the flux of tax rates and ensure stability, the officials said.
“What we have suggested is a 'Next Gen GST' keeping the needs of the middle class, poor, farmers, and MSMEs in mind. Also, it has been ensured that tax on daily use items is low,” the official told PTI.
“Once the system is put in place and India becomes a developed nation, we can think about a single rate GST,” the official said, adding that a single rate structure is suitable for developed countries where income and spending capacities are uniform.
“The ultimate aim is to move to a single slab structure,” the official said, adding that the time, however, is not right at present.
According to the official, during the process of overhaul, every due process is being followed. The Centre has taken the steering role but is protecting constitutional obligations by sharing it with the Group of

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40 billion of non-exempt Indian exports such as gems and jewellery, textiles and footwear.
Prime Minister Narendra Modi, in his Independence Day address to the nation on Friday, emphasised that India should become self-reliant and consume what is made in India.
The tax slabs that the Union Finance Ministry has proposed will go to a group of ministers from different states, and after their concurrence, will be placed before the all-powerful GST Council, which is headed by the Union Finance Minister and comprises representatives of all states and UTs.
The council is expected to meet next month to deliberate on the tax reform proposal.
About 20 per cent of items, including packaged food and beverages, apparel and hotel accommodation, are currently taxed at 12 per cent GST and account for 5-10 per cent of consumption and 5-6 per cent GST revenue.
Moving them to a lower 5 per cent slab may lead to loss of revenue, but the Central government is hopeful that a boost in consumption would

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HIGHLIGHTS

HIGHLIGHTSGSTDated:- 16-8-2025PTINew Delhi, Aug 16 (PTI) Following are the top stories at 9 pm: NATION DEL47 MEA-UKRAINE-LD SUMMIT
India welcomes Putin-Trump summit on Ukraine conflict; pitches for early return of peace New Delhi: The world wan

HIGHLIGHTS
GST
Dated:- 16-8-2025
PTI
New Delhi, Aug 16 (PTI) Following are the top stories at 9 pm: NATION DEL47 MEA-UKRAINE-LD SUMMIT
India welcomes Putin-Trump summit on Ukraine conflict; pitches for early return of peace New Delhi: The world wants to see an early end to the conflict in Ukraine, India said on Saturday, welcoming the summit talks between US President Donald Trump and his Russian counterpart, Vladimir Putin, in Alaska that ended without a ceasefire deal.
DEL32 JK-LD CLOUDBURST-OPERATION
Explosives used to blast giant boulders to speed up rescue efforts in cloudburst-hit J-K village Kishtwar/Jammu: Explosives were used to blast giant boulders hampering the ongoing rescue and relief operations in the disaster-hit Chisoti village in Jammu and Kashmir's Kishtwar district on the third day on Saturday, officials said.
DEL11 SPACE-SHUKLA
Shubhanshu Shukla to return to India on Sunday, to meet PM Modi New Delhi: Astronaut Shubhanshu Shu

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“. By Asim Kamal
DEL16 JK-CLOUDBURST-LD OMAR
People's anger genuine, rescuers focused on saving those trapped: J-K CM at cloudburst-hit village Chasoti (J-K): The anger of people seeking information about their kin missing in the aftermath of a cloudburst is quite understandable, Jammu and Kashmir Chief Minister Omar Abdullah said on Saturday after several locals confronted him in Chasoti and vented their frustration.
DEL27 EC-PRESSER
EC to hold press conference on Sunday amid opposition allegations New Delhi: The Election Commission (EC) will hold a press conference on Sunday amid allegations of “vote theft” levelled by Congress leader Rahul Gandhi and relentless protest by opposition parties over the intensive electoral roll revision in Bihar.
DEL20 WANG-INDIA-VISIT
Chinese Foreign Minister Wang Yi to pay 2-day visit to India from Monday: MEA New Delhi: Chinese Foreign Minister Wang Yi will pay a two-day visit to India beginning Monday to hold border talks w

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I Periyasamy, saying it was an attempt to divert attention from 'vote chori,' a term coined by Congress leader Rahul Gandhi over alleged electoral fraud in the 2024 elections that the BJP-led NDA won.
BUSINESS DEL49 BIZ-GST-LD CONGRESS
Govt slams Congress for stand on GST reforms, says it smacks of hypocrisy New Delhi: The government on Saturday lashed out at the opposition Congress for attempting to take credit for the biggest GST reforms, saying the party was not even present in Parliament when the landmark one-nation, one-tax was passed, and its statements now smack of hypocrisy.
LEGAL LGD1 SC-TAX AUTHORITY
Assessee must comply with summons issued by tax authority: SC New Delhi: The Supreme Court has held that an assessee must comply with a summons and furnish a response to a show cause notice when it is issued by the central or the state tax authority.
LGD4 SC-PRESIDENTIAL REFERENCE-BILLS
Imposing fixed timelines on Guvs, Prez would lead to 'constitutio

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Govt slams Congress for stand on GST reforms, says it smacks of hypocrisy

Govt slams Congress for stand on GST reforms, says it smacks of hypocrisyGSTDated:- 16-8-2025PTINew Delhi, Aug 16 (PTI) The government on Saturday lashed out at the opposition Congress for attempting to take credit for the biggest GST reforms, saying the

Govt slams Congress for stand on GST reforms, says it smacks of hypocrisy
GST
Dated:- 16-8-2025
PTI
New Delhi, Aug 16 (PTI) The government on Saturday lashed out at the opposition Congress for attempting to take credit for the biggest GST reforms, saying the party was not even present when the landmark one-nation, one-tax was passed, and its statements now smack of hypocrisy.
Recalling the history of Goods and Services Tax (GST) rollout, top government sources said the Congress par

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‘Next Gen GST’ precursor to eventual single tax slab GST: Sources

‘Next Gen GST’ precursor to eventual single tax slab GST: SourcesGSTDated:- 16-8-2025PTINew Delhi, Aug 16 (PTI) Describing the proposed GST tax reforms as ‘Next Gen GST’, senior government officials on Saturday said that the two-slab tax regime will event

'Next Gen GST' precursor to eventual single tax slab GST: Sources
GST
Dated:- 16-8-2025
PTI
New Delhi, Aug 16 (PTI) Describing the proposed GST tax reforms as ‘Next Gen GST’, senior government officials on Saturday said that the two-slab tax regime will eventually pave the way for a single sales/services tax rate, hopefully by 2047.
They said the proposed new GST regime, which slashes tax rates and assigns just two slabs of 5 per cent and 18 per cent, will boost the economy and als

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Assessee must comply with summons issued by tax authority: SC

Assessee must comply with summons issued by tax authority: SCGSTDated:- 16-8-2025PTINew Delhi, Aug 16 (PTI) The Supreme Court has held that an assessee must comply with a summons and furnish a response to a show cause notice when it is issued by the centr

Assessee must comply with summons issued by tax authority: SC
GST
Dated:- 16-8-2025
PTI
New Delhi, Aug 16 (PTI) The Supreme Court has held that an assessee must comply with a summons and furnish a response to a show cause notice when it is issued by the central or the state tax authority.
“Assessee” under the Income Tax Act of 1961 refers to any individual or entity that holds the legal liability of tax payment or any other financial commitments as specified by the Act.
Thus, laying down guidelines to prevent duplication of adjudication by central and state GST authorities, a bench of Justices J B Pardiwala and R Mahadevan said that mere issuance of a summons does not enable either the issuing authority or the recipient to a

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h intimation.
“We say, so as this course of action would obviate needless duplication of proceedings and ensure optimal utilisation of the Department's time, effort, and resources, bearing in mind that action initiated by one authority enures to the benefit of all.
“If the claim of the taxable person regarding the overlap of inquiries is found untenable, and the investigations of the two authorities pertain to different 'subject matters,' an intimation to this effect, along with the reasons and a specification of the distinct subject matters, shall be immediately conveyed in writing to the taxable person,” the bench added.
The apex court said the taxing authorities are well within their rights to conduct an inquiry or investigation un

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Want GST 2.0 to be Good and Simple Tax not Growth Suppressing Tax: Cong

Want GST 2.0 to be Good and Simple Tax not Growth Suppressing Tax: CongGSTDated:- 16-8-2025PTINew Delhi, Aug 16 (PTI) The Congress Saturday demanded an official discussion paper on GST 2.0 soon for a wider debate on it and said the reform should be toward

Want GST 2.0 to be Good and Simple Tax not Growth Suppressing Tax: Cong
GST
Dated:- 16-8-2025
PTI
New Delhi, Aug 16 (PTI) The Congress Saturday demanded an official discussion paper on GST 2.0 soon for a wider debate on it and said the reform should be towards a “Good and Simple Tax” in letter, spirit, and compliance, and not the “Growth Suppressing Tax” it has become.
The opposition party's assertion came a day after Prime Minister Narendra Modi announced that GST rates will be lowered by Diwali, bringing down prices of everyday use items, as his government looks to reform the eight-year-old regime that has been plagued by litigation and evasion.
Congress general secretary in-charge of communications, Jairam Ramesh, said that

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implification of the rate structure is essential, but must be done in a manner that minimises revenue uncertainty to states and also eliminates the classification disputes that have become so common.
“The GST compensation cess expires on March 31, 2026. This must be extended to offset any revenue uncertainty from the rationalisation of the rate structure.” Ramesh said the widespread concerns of MSMEs the major employment generators in the economy must be addressed meaningfully, he said, adding that apart from major procedural changes in GST, this will involve further increasing the thresholds that must apply to interstate supplies as well.
Sectoral issues that have surfaced, for instance, in textiles, tourism, exporters, handicrafts an

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goods and services be taxed in two slabs standard and merit and a select few items be charged special rates.
This is to replace the current goods and services tax (GST) structure, where sale of goods and rendering of services are taxed in four different brackets 5 per cent, 12 per cent, 18 per cent and 28 per cent with luxury and sin goods attracting a levy on top of the highest rate of 28 per cent.
“This Diwali, I am going to make it a double Diwali for you,” Modi had said in his address to the nation.
Stating that over the past eight years, his government has undertaken major GST reforms, the prime minister said, “We have discussed with states and we are bringing next-generation GST reforms that will reduce the tax burden across th

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Petition Challenging GST Registration Cancellation Dismissed Under Section 29(2)(c) for Non-Compliance

Petition Challenging GST Registration Cancellation Dismissed Under Section 29(2)(c) for Non-ComplianceCase-LawsGSTThe HC dismissed the petitioner’s application challenging the cancellation of its GST registration. The court found no merit in the claim of

Petition Challenging GST Registration Cancellation Dismissed Under Section 29(2)(c) for Non-Compliance
Case-Laws
GST
The HC dismissed the petitioner's application challenging the cancellation of its GST registration. The court found no merit in the claim of non-receipt of the show cause notice, as the petitioner had responded to it, citing internal communication issues. The impugned order was issued after affording the petitioner an opportunity to be heard in compliance with the proviso to Section 29(2) of the CGST/BGST Act. The petitioner failed to file pending returns and pay admitted tax before the order dated 03.07.2020, which constituted a valid ground for cancellation under Section 29(2)(c). The court distinguished precedents cited by the petitioner, noting that in this case, reasons were duly provided and the petitioner was not denied a hearing. Consequently, the court upheld the validity of the cancellation order and dismissed the petitioner's challenge.
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Appeal dismissed challenging budgetary support eligibility; settled law confirmed, previous order set aside under GST rules.

Appeal dismissed challenging budgetary support eligibility; settled law confirmed, previous order set aside under GST rules.Case-LawsGSTThe Division Bench of the HC upheld the Single Judge’s ruling in favor of Respondent No. 3, dismissing the writ petitio

Appeal dismissed challenging budgetary support eligibility; settled law confirmed, previous order set aside under GST rules.
Case-Laws
GST
The Division Bench of the HC upheld the Single Judge's ruling in favor of Respondent No. 3, dismissing the writ petition filed by the appellant challenging eligibility for budgetary support. The Court found the issue to be settled law and declined to revisit the matter. Consequently, the appeal was dismissed, and the order dated 27-06-2022 issued by the Assistant Commissioner, Central GST, Gangtok Division, was set aside. The petition was disposed of accordingly.
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Writ Petition Dismissed for Delay; Section 107 CGST Act Limits Appeal Period; Email Service Starts Limitation Clock

Writ Petition Dismissed for Delay; Section 107 CGST Act Limits Appeal Period; Email Service Starts Limitation ClockCase-LawsGSTThe HC dismissed the writ petition filed beyond the prescribed limitation period for appeal under Section 107 of the CGST Act, 2

Writ Petition Dismissed for Delay; Section 107 CGST Act Limits Appeal Period; Email Service Starts Limitation Clock
Case-Laws
GST
The HC dismissed the writ petition filed beyond the prescribed limitation period for appeal under Section 107 of the CGST Act, 2017, holding that service by registered email constitutes valid service, triggering the limitation period. The court reaffirmed that statutory limitation periods are absolute and not extendable by applying Section 5 of the Limitation Act or through writ jurisdiction under Article 226. The petitioner failed to demonstrate sufficient cause for delay or explain the non-filing within time. The HC emphasized adherence to the exclusive statutory appellate mechanism, refusing to condone delay or entertain the petition on grounds neither involving gross injustice nor patent illegality. Consequently, allowing the petition would circumvent the statutory appellate process and render the limitation provision ineffective. The petition was rejected in limine.
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Retrospective cancellation of GST registration invalid without clear notice or reasons, effective only from SCN date

Retrospective cancellation of GST registration invalid without clear notice or reasons, effective only from SCN dateCase-LawsGSTThe HC held that the retrospective cancellation of the petitioner’s GST registration was not justified as the show cause notice

Retrospective cancellation of GST registration invalid without clear notice or reasons, effective only from SCN date
Case-Laws
GST
The HC held that the retrospective cancellation of the petitioner's GST registration was not justified as the show cause notice (SCN) did not contemplate such retrospective effect, nor were any reasons provided to support it. Consequently, the cancellation order was to take effect only from the date of the SCN, 4th April 2022. The petition was accordingly disposed of, affirming that the registration could not be annulled retrospectively based solely on the non-availability of the principal place of business at the time of the field visit.
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PM Modi promises big bang GST reform by Diwali, price cuts on everyday items

PM Modi promises big bang GST reform by Diwali, price cuts on everyday itemsGSTDated:- 15-8-2025PTINew Delhi, Aug 15 (PTI) Prime Minister Narendra Modi on Friday announced plans for big bang reforms in the GST regime by Diwali, which will bring down price

PM Modi promises big bang GST reform by Diwali, price cuts on everyday items
GST
Dated:- 15-8-2025
PTI
New Delhi, Aug 15 (PTI) Prime Minister Narendra Modi on Friday announced plans for big bang reforms in the GST regime by Diwali, which will bring down prices of everyday items, as his government looks to overhaul the eight-year-old tax structure plagued by compliance issues, evasions and litigation.
The present GST tax rates of nil/zero on essential food items, 5 per cent on daily use products, 12 per cent on standard goods, 18 per cent on electronics and services and 28 per cent on luxury and sin goods will be replaced by by a two tax slabs of 5 per cent and 18 per cent plus a special 40 per cent top bracket for 5-7 demerit goods.
While essential food items, medicines and education will continue to be taxed at zero rate in the proposed revamped goods and services tax (GST) regime, 99 per cent of items in the current 12 per cent slab will move to the 5 per cent bracket.

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troleum products, such as petrol, diesel, natural gas, ATF and crude oil, will continue to remain outside the GST, as they remain a major source of revenue for states.
When GST was implemented from July 1, 2017, it subsumed central levies like excise duty and service tax and state taxes like VAT into one levy. However, petroleum products, for the time being, and alcohol were kept out of it.
“This Diwali, I am going to make it a double Diwali for you,” Modi said in his address.
Stating that over the past eight years, his government has undertaken major GST reforms, the Prime Minister said, “We have discussed with states and we are bringing next-generation GST reforms that will reduce the tax burden across the country”.
“Tax on items for the common man will be reduced substantially. Our MSMEs will benefit hugely. Daily use items will become cheaper, which will also strengthen our economy,” he said.
Soon after the Prime Minister's address, the Union Finance Ministry, in a statement,

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ce the GoM vets it, it would go to the GST Council, headed by the Union Finance Minister and comprising representatives of all states, for a final implementation decision sometime in September.
The revamp may lead to a loss of revenue, which currently stands around Rs 2.10 lakh crore a month, but a boost to consumption and the economy is likely to recoup it in a matter of “a few months”, sources said.
Inverted duty structure in sectors like textiles and fertiliser will be addressed.
Once the revamped regime is implemented, the cess that is charged on luxury and sin goods on top of the highest 28 per cent rate will immediately end. The cess was initially levied to compensate states for the loss of revenue in the first five years of implementation of GST. It continued thereafter as the money borrowed to pay for the compensation had to be repaid. That repayment and revamp will coincide, sources said.
On structural reforms, the finance ministry said the inverted duty structure needs to

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Centre proposes 5%, 18% GST slabs; 40% tax on demerit items

Centre proposes 5%, 18% GST slabs; 40% tax on demerit itemsGSTDated:- 15-8-2025PTINew Delhi, Aug 15 (PTI) The central government has proposed two tax rates of 5 per cent and 18 per cent in the revamped Goods and Services Tax (GST), slated to replace the c

Centre proposes 5%, 18% GST slabs; 40% tax on demerit items
GST
Dated:- 15-8-2025
PTI
New Delhi, Aug 15 (PTI) The central government has proposed two tax rates of 5 per cent and 18 per cent in the revamped Goods and Services Tax (GST), slated to replace the current indirect tax regime by Diwali this year, highly placed sources said.
The Centre has sent its proposal, which removes 12 and 28 per cent slabs, to the panel of state finance ministers on GST rate rationalisation. They will now discuss it and place it before the GST Council. The council is expected to meet next month.
While nil or zero per cent GST is charged on essential food items, 5 per cent is charged on daily use items, 12 per cent on standard goods, 18 per cent

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ategory and attract the highest tax rate.
As many as 8 sectors textiles, fertiliser, renewable energy, automotive, handicrafts, agriculture, health and insurance will benefit the most from the GST rate overhaul as per the Centre's proposal for ushering in the next generation GST reform.
The revamped GST is expected to give a big boost to consumption, offsetting the revenue loss that may occur from the rate revision, they said.
“There will be a gap in revenues because of the rejig, but the revenue will be offset in the next few months,” a government source said, adding that the new slab structure would be implemented by the early third quarter.
Under the present GST structure, which came into being after central and state levies were s

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GST revamp to see rates of 5%, 18%; 40% tax on 7 items

GST revamp to see rates of 5%, 18%; 40% tax on 7 itemsGSTDated:- 15-8-2025PTINew Delhi, Aug 15 (PTI) The central government has proposed just two tax rates of 5 per cent and 18 per cent in the revamped Goods and Services Tax (GST), slated to replace the c

GST revamp to see rates of 5%, 18%; 40% tax on 7 items
GST
Dated:- 15-8-2025
PTI
New Delhi, Aug 15 (PTI) The central government has proposed just two tax rates of 5 per cent and 18 per cent in the revamped Goods and Services Tax (GST), slated to replace the current indirect tax regime by Diwali this year, highly placed sources said.
While the presently nil or zero per cent GST tax is charged on essential food items, 5 per cent is charged on daily use items, 12 per cent on standard goods, 18 per cent electronics and services and 28 per cent on luxury and sin goods, the revamped GST regime will have two slabs plus a special rate of 40 per cent for luxury and sin goods, they said.
When the revamped structure is approved by the GS

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PM Modi unleashes attack on Oppn over illegal infiltration, Parliament disruptions

PM Modi unleashes attack on Oppn over illegal infiltration, Parliament disruptionsGSTDated:- 15-8-2025PTINew Delhi, Aug 15 (PTI) Prime Minister Narendra Modi on Friday launched a frontal attack on the Opposition citing issues like illegal infiltration, di

PM Modi unleashes attack on Oppn over illegal infiltration, Parliament disruptions
GST
Dated:- 15-8-2025
PTI
New Delhi, Aug 15 (PTI) Prime Minister Narendra Modi on Friday launched a frontal attack on the Opposition citing issues like illegal infiltration, disruptions in Parliament, the Indus Waters Treaty, and what he termed as “failures” of previous governments to carry out various economic reforms.
In his address to the nation from the ramparts of Red Fort on 79th Independence Day, Modi sought to foil the Opposition attack on his government over issues of welfare of backwards, language diversity and GST reforms.
At the same time, he also sought the Opposition's help in initiating policy decisions that were aimed at taking the country forward.
The prime minister's announcement of next generation GST reforms from Diwali this year came amidst constant criticism by the opposition parties, which dubbed it as “Gabbar Singh Tax”.
Modi also showered praise on the Rashtri

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a well-thought out conspiracy, the demography of the country is being changed. Seeds of a new crisis are being sown.
“These 'ghuspaithiye' (intruders) are snatching the livelihood of the youth of my country, these 'ghuspaithiye' are targeting the sisters and daughters of my country, this will not be tolerated. These 'ghuspaithiye' are misleading the innocent tribals and grabbing their land. This country will not tolerate this,” Modi said.
Recalling the dark days of the Emergency, Modi said when we talk about democracy and independent India, “then our Constitution is the best lighthouse for us, our centre of inspiration”.
“But, 50 years ago, the Constitution of India was strangled. The Constitution of India was stabbed in the back, the country was turned into a prison, an Emergency was imposed.
“It has been 50 years since the Emergency, no generation of the country should ever forget this sin of murdering the Constitution. The sinners who killed the Constitution of India should

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to blunt the Opposition attack for allegedly ignoring justice for backwards, Modi remembered Mahatma Jyotiba Phule's principles.
“By giving priority to the backward, we want to reach the heights of transformation. We want to put in our utmost effort for this. Through transparent policies, we wish to make “priority to the backward” a reality on the ground, bringing it into the life of every backward person,” he asserted.
“We are not concerned only with socially backward groups, we also want to give priority to backward regions,” he said.
Referring to frequent disruptions in Parliament, Modi said the government amended several laws to simplify lives of common people and keep public interest first.
“We have gone to Parliament to amend dozens of laws to simplify them, always placing the interests of the public first. This time too, amidst the ruckus, the news may not have reached people about a very significant reform that has taken place in the Income Tax Act. We have decided to a

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Economic selfishness rising globally, self-reliance must for ‘Samriddh Bharat’; GST rate cut by Diwali: PM Modi on I-Day

Economic selfishness rising globally, self-reliance must for ‘Samriddh Bharat’; GST rate cut by Diwali: PM Modi on I-DayGSTDated:- 15-8-2025PTINew Delhi, Aug 15 (PTI) Prime Minister Narendra Modi on Friday gave a clarion call for making a “Samriddh Bharat

Economic selfishness rising globally, self-reliance must for 'Samriddh Bharat'; GST rate cut by Diwali: PM Modi on I-Day
GST
Dated:- 15-8-2025
PTI
New Delhi, Aug 15 (PTI) Prime Minister Narendra Modi on Friday gave a clarion call for making a “Samriddh Bharat” by becoming self reliant in fields ranging from fighter jet engines to energy and Artificial Intelligence, as he announced a task force for next generation reforms, GST changes as big gift for Diwali, and a state-of-the art defence shield dubbed “sudarshan chakra.” Modi's consecutive 12th Independence Day speech was focused on the theme of “aatmanirbharta” (self-reliance) at a time India and the world is facing growing US protectionism, as he highlighted the rising global selfish interest.
“We should not waste our energy on shortening the line of any country. We have to make our line longer with full energy. The world will acknowledge our mettle if we can do it. (kisi doosre ki lakeer chhoti karne ke liye apni urj

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s on Indian imports to a whopping 50 per cent after singling out India for purchase of Russian oil to pressure it on trade.
Sporting a saffron turban, Modi, however, made no direct reference to the issue as he doubled down on his emphasis on self-reliance and “swadeshi”. The task force on reforms will make time-bound recommendations for adapting India to become developed by 2047, he said.
“It is the call of the hour that we need not fret in the times of crisis but should work to improve our abilities and accomplishments,” he said. Indian manufacturers' mantra should be “daam kam, dum jyada” (less price, better quality), he added.
India can do it, he said noting that toy producers have begun exporting after he had in a 'Mann ki Baat' episode called for boosting domestic production and the need for stopping their import.
The prime minister likened his call for “Samriddh Bharat” (prosperous India) to the freedom fighters' goal of “Swatantra Bharat” (independent India).
If innume

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lectoral rolls, protested fiercely by the opposition, as a necessity to deny voting rights to people with suspect citizenship.
Warning the country about the challenge, he said, “The country's demography is being changed as a well-thought-out conspiracy. Seeds of a new crisis are being sown. It will not be tolerated.” Infiltrators are snatching away the jobs of the country's youth, grabbing lands of the gullible tribal population, and luring girls, stressing that the country will not tolerate this, he added. “No country can allow itself to be captured by infiltrators.” Modi announced that the next generation GST reforms which will lower tax burden substantially and benefit small industries is in the works and the lower taxes will be a Diwali gift to citizens. Diwali falls on October 20.
Ahead of the 100th anniversary of Rashtriya Svayamsevak Sangh(RSS), Modi heaped praise on its nation-building efforts and said service, dedication, organisation, and unparalleled discipline are i

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m terror attack on April 22 in which 26 people, mostly tourists, were killed.
Announcing work on developing an indigenous defence system to secure critical strategic and civilian facilities and religious places, he said the “Sudarshan Chakra” system is inspired by Lord Krishna, and it will not only neutralise any attack from the enemy but also hit back with double force.
Attacked by the Congress for his government's alleged undermining of constitutional values, Modi asserted that the Constitution is the country's guiding light and asked people to never forget the sins of those who “murdered” the Constitution and democracy in 1975 by imposing the Emergency.
While his government has taken numerous strides in making the country self-reliant in different fields, including modern technology, he said the issue of India making inroads in the semiconductor industry was explored for five-six decades but files remained stuck and the idea was killed in infancy.
Countries which invested in

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FinMin proposes 2-tier GST structure, special rates on select items; Council meet likely in Sept

FinMin proposes 2-tier GST structure, special rates on select items; Council meet likely in SeptGSTDated:- 15-8-2025PTINew Delhi, Aug 15 (PTI) The finance ministry on Friday said it has proposed a two-slab GST rate structure to the Group of Ministers (GoM

FinMin proposes 2-tier GST structure, special rates on select items; Council meet likely in Sept
GST
Dated:- 15-8-2025
PTI
New Delhi, Aug 15 (PTI) The finance ministry on Friday said it has proposed a two-slab GST rate structure to the Group of Ministers (GoM), along with special rates for select few items, as the government looks to unveil “next generation” GST reforms in the current financial year which will lower tax burden on daily use items.
The Centre has proposed to a panel of state finance ministers that the Goods and Services tax (GST) regime should have just two slabs where goods and services can be classified as 'standard' and 'merit'. Also, special rates can be levied on select items which will be specified.
Curr

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eting will deliberate on the recommendations of GoM, and every effort will be made to facilitate early implementation so that the intended benefits are substantially realised within the current financial year,” the finance ministry said while unveiling its proposal which has been submitted to the rate rationalisation GoM.
Prime Minister Narendra Modi in his address to the nation on 79th Independence Day announced that 'next generation' GST reforms which will lower tax burden substantially and benefit small industries is in the works and the lower taxes will be a Diwali gift to citizens.
Soon after the announcement, the finance ministry said the Centre has shared its proposal on GST to the GoM which rests on three pillars structural ref

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icy direction to build industry confidence and support better business planning”.
On the 'ease of living' side, the finance ministry's proposal include seamless, technology driven GST registration, especially for small businesses and startups. It also suggested implementation of pre-filled GST returns and faster and automated processing of refunds for exporters and those with inverted duty structure.
The ministry said 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.
The ministry said in the true spirit of cooperative federalism, the Centre remains committed to working closely with the states.
“It will be buil

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PM Modi says GST rates will be cut by Diwali; drastic reforms on the anvil

PM Modi says GST rates will be cut by Diwali; drastic reforms on the anvilGSTDated:- 15-8-2025PTINew Delhi, Aug 15 (PTI) Prime Minister Narendra Modi announced on Friday that the GST rates will be lowered by Diwali, bringing down prices of everyday use it

PM Modi says GST rates will be cut by Diwali; drastic reforms on the anvil
GST
Dated:- 15-8-2025
PTI
New Delhi, Aug 15 (PTI) Prime Minister Narendra Modi announced on Friday that the GST rates will be lowered by Diwali, bringing down prices of everyday use items, as his government looks to reform the eight-year old regime that has been plagued by litigations and evasions.
Soon after the prime minister's announcement from the ramparts of the Red Fort on the 79th Independence Day, the Union Finance Ministry said it has proposed that most goods and services be taxed in two slabs – standard and merit – and select few items be charged special rates. This is to replace the current goods and services tax (GST) structure where sale of goods and rendering of services are taxed in four different brackets – 5, 12, 18 and 28 per cent with luxury and sin goods attracting a levy on top of the highest rate of 28 per cent.
“This Diwali, I am going to make it a double Diwali for you,” M

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ne tax, has led to indirect tax base doubling to 1.52 crore but tax rate cuts and the pandemic slowdown have meant net revenue collected has only recently converged to pre-GST level. It has also seen alleged evasion cases and litigation swell.
To address this, the finance ministry has in a proposal to a group of ministers from states and Centre, constituted by the all powerful GST Council, called for “reduction of taxes on common man items and aspirational goods” to enhance affordability, boost consumption, and make essential and aspirational goods more accessible to a wider population.
Significantly, it proposed moving to a “simple tax with two slabs – standard and merit. Special rates only for a select few items”.
Compensation cess which was levied on luxury and sin goods to make up for the shortfall in tax revenues that states may face because of GST regime, has ended, creating fiscal space and “providing greater flexibility to rationalise and align tax rates within the GST fr

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processing of refunds is needed for exporters and those with inverted duty structure.
“The Centre's proposal, anchored on the above three foundational pillars, has been shared with the GoM for further deliberations within the GoM. The Centre has taken this initiative with the aim of building a constructive, inclusive, and consensus-based dialogue among all stakeholders,” the ministry said.
“In the true spirit of cooperative federalism, the Centre remains committed to working closely with the states. It will be building a broad-based consensus with the states in the coming weeks, to implement the next generation of reforms as envisioned by the prime minister,” it said.
The GST Council, when it meets next, will deliberate on the recommendations of GoM, and every effort will be made to facilitate early implementation so that the intended benefits are substantially realised within the current financial year.
“The government reaffirms its commitment to evolving the GST into a simple

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Modi announces task force to consider next generation reforms

Modi announces task force to consider next generation reformsGSTDated:- 15-8-2025PTINew Delhi, Aug 15 (PTI) Prime Minister Narendra Modi on Friday announced formation of a task force for ‘next-generation reforms’ and revision of GST laws, as he devoted a

Modi announces task force to consider next generation reforms
GST
Dated:- 15-8-2025
PTI
New Delhi, Aug 15 (PTI) Prime Minister Narendra Modi on Friday announced formation of a task force for 'next-generation reforms' and revision of GST laws, as he devoted a major part of his 103 minute Independence Day speech on making India self-reliant in host of sectors ranging from semiconductors to fertilzers.
The announcements assumes significance in the wake of current geopolitical scenario and high tariffs imposed on Indian goods by the US.
After assuming charge for the first time in May 2024, the Modi-led government has brought in a series economic reforms, including introduction of Goods and Services Tax (GST), further liberalisat

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reforms are aimed at creating a supportive ecosystem for innovation, entrepreneurship, and economic growth.
In another major announcement, the prime minister said the next-generation GST reforms by Diwali is aimed at reducing taxes on daily-use items.
“The government will bring Next Generation GST reforms, which will bring down tax burden on the common man. It will be a Diwali gift for you,” he said, ensuring that these reforms directly benefit citizens and stimulate economic activity.
Modi underscored that India is committed to structural, regulatory, policy, process, and procedural reforms, building a nation where governance works for the people, not the other way around.
Referring to reforms on the direct taxes front, he talked

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judiciously, which will not only protect soil health but also curtail our domestic requirements.
India import urea as well as phosphatic and potassic (P&K) fertilisers to meet its domestic requirements.
He also highlighted about replacement of outdated criminal laws with the Indian Justice Code, simplifying justice and legal procedures.
These reforms signal a modern, citizen-centric government where ordinary people can experience ease, fairness, and empowerment, he added.
Modi said that over the past years, the government has undertaken a historic wave of reforms, abolishing over 40,000 unnecessary compliances and repealing more than 1,500 outdated laws. Dozens of other laws were simplified in Parliament, always keeping citizens' i

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