India’s GST rationalization, effective September 22, aims to boost consumption and growth by compressing the rate structure. Business leaders anticipate it will soften the impact of US tariffs and stimulate demand, benefiting sectors like FMCG and retail. Economists note uneven tax receipts, while others predict a strong policy push alongside recent rate cuts.
Indian jewellers have expressed mixed reactions to the government’s decision to maintain the 3% GST rate on gems and jewellery. While some industry leaders believe that reduced GST rates in other sectors will indirectly boost demand and consumer spending, others worry that the unchanged rate will hinder growth and affordability, especially during the festive season.
The US trade deficit surged to a four-month high in July, climbing 32.5% to $78.3 billion, as businesses accelerated imports in anticipation of new tariffs imposed by President Trump. Imports saw a significant jump, particularly in gold and capital goods related to AI, while exports experienced only a slight increase.
US jobless claims edged up to 237,000 for the week ending August 30th, slightly above economists’ predictions, signaling a potential slowdown despite employers largely retaining staff. Hiring has weakened, leading to a ‘no hire, no fire’ dynamic, with attention now focused on the upcoming August employment report.
Many taxpayers are confused about Form 10-IEA, which is required for opting in or out of the new tax regime, especially those with business income using ITR3 or ITR4. Missing the filing deadline results in default assessment under the new regime, potentially costing taxpayers refunds as deductions are not considered. Frequent rule changes have further
Finance Minister Nirmala Sitharaman announced significant GST rate cuts following the 56th GST Council meeting, implementing a two-tier structure of 5% and 18% effective September 22. The rate rationalization, supported by all states, aims to benefit the common man by consolidating rates and reallocating items across tax slabs.
The GST Council has approved a new 40% tax slab for sin and luxury goods, set to replace the existing cess. While the implementation date is pending, 5% and 18% slabs take effect from September 22. Finance Minister Nirmala Sitharaman announced the move, highlighting reduced tax burdens for the common person.
