GST news today LIVE: States hail GST reforms, Sensex, Nifty shake off US tariff blues

The GST reforms are expected to boost India's GDP growth rate by 20-30 basis points, Bank of Baroda economist Sonal Badhan told ANI.

This growth will be more pronounced in the second half of Fiscal 2026, with an even higher increase expected in FY27 as the impact of GST rate cuts becomes more visible.

The revenue loss due to GST rationalisation, seen at ₹48,000 crore annually, is of limited risk to India's fiscal deficit as the full impact is likely to be offset by higher consumption.

"Since the GST overhaul is expected to significantly boost consumption ahead of the festive season, we expect revenue forgone will get offset by higher consumption," she said.

A guage of India's auto stocks, which includes Maruti Suzuki India Ltd., Tata Motors Ltd. and Mahindra & Mahindra Ltd., jumped to the highest level in nearly 11 months after the government slashed GST on cars.

Auto shares were the top sectoral gainers on the benchmark Nifty 50 index, which was trading 0.7% higher.

Andhra Pradesh Chief Minister N Chandrababu Naidu on Thursday welcomed the GST reforms, describing the changes as a "pro-poor and growth-oriented decision" that would benefit all sections of the society.

“This pro-poor, growth-oriented decision will benefit all sections of society, from farmers to businesses,” Naidu said in a post on X.

He congratulated Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman on this "transformative step".

These GST reforms mark a strategic and citizen-centric advancement of our tax framework, ensuring a better quality of life for every Indian, he added.

The stock market surged on Thursday after the government’s sweeping GST reforms, with the Sensex rallying over 650 points and the Nifty climbing past the 24,800 mark, as investors cheered the tax rationalisation and exemptions announced at the 56th GST Council meeting.

Finance minister Nirmala Sitharaman said that the decision to introduce a two-tier GST structure has not been influenced by the tariffs imposed by the US on India.

She said the central government had been working on these for 1.5 years.

In a major overhaul, the GST Council on Wednesday approved a two-tier indirect tax structure of 5 and 18 per cent, and introduced a special 40 per cent slab for luxury and 'sin' goods. The new rates will take effect from September 22.

What gets cheater

Individual life and health insurance policies, paneer, pizza bread, butter, ghee, condensed milk, dry fruits, ice cream, fertilisers, agricultural equipment, small cars (petrol <1200cc, diesel <1500cc), motorcycles up to 350cc, cement and daily use items like shampoo, toothpaste, toothbrushes, feeding bottles, and umbrellas will get cheaper.

What gets costlier

Soft drinks, aerated drinks, caffeinated and carbonated beverages, cars with petrol engines over 1200cc or diesel engines over 1500cc, motorcycles above 350cc, racing cars, yachts, pan masala, cigarettes, chewing tobacco, and gutka will get costlier.

Former finance minister and Rajya Sabha MP P Chidambaram welcomed the GST rationalisation and the reduction in rates on a range of goods and services and services. However, he said that it was "8 years TOO LATE".

In a post on X, he said, "The GST rationalisation and the reduction in rates on a range of goods and services are WELCOME but 8 years TOO LATE. We have been crying hoarse for the last 8 years against the design and rates of GST, but our pleas fell on deaf years."

He further questioned as to what drove the government to make the decision. He asked, "It will be interesting to speculate on what drove the government to make the changes: Sluggish growth? Rising household debt? Falling household savings? Elections in Bihar? Mr Trump and his tariffs? All of the above?"

Trinamool Congress welcomed the revised rates and GST cuts as a "victory for common people", which was achieved after sustained pressure on the government. However, it slammed the BJP-led NDA government for being "tone-deaf" and only acting "when cornered".

Congress leader P Chidambaram also welcomed the rate cuts but questioned the eight-year delay in the revision of GST. He said the current GST design and rates should not have been introduced in the first place, adding that the opposition had repeatedly warned the government against these issues for years.

The GST Council on Wednesday announced a 40 per cent goods and services tax (GST slab for the so-called sin goods and luxury items.

Items that fall under the 40% slab are:

• Cigarettes, pan masala, gutka, chewing tobacco, bidis
• Aerated waters containing added sugar or flavour, caffeinated drinks, non-alcoholic beverages
• Smoking pipes
• Motorcycles exceeding 350cc
• Aircraft for personal use
• Yachts
• Revolvers and pistols
• Betting, casinos, gambling, horse racing, lottery and online money gaming

After the GST Council on Wednesday approved a two-tier structure of 5 and 18 per cent, here is a list of items that received the rate cut.

Items under 18%:

• Petrol & Petrol Hybrid, LPG, CNG Cars (not exceeding 1200 cc & 4000 mm)
• Diesel & Diesel Hybrid Cars (not exceeding 1500 cc & 4000 mm)
• Three-wheeled Vehicles
• Motorcycles (350 cc & below)
• Motor Vehicles for the transport of goods
• Air Conditioners
• Televisions (above 32″) including LED & LCD TVs
• Monitors & Projectors
• Dish Washing Machines
• Road tractors of engine capacity more than 1800 cc

After the GST Council on Wednesday green-signalled a two-tier structure of 5 and 1 per cent, here is a list of items that received the rate cut.

Items under 0%:

• 33 life-saving drugs and medicines, cancer medicines, medication for rare diseases
• Individual life insurance, health policies
• Educational material and supplies, like notebooks, pencils, crayons, etc.
• Ultra-High Temperature milk, paneer, pre-packaged and labelled items

Items under 5%:

• Hair oil, shampoo, toothpaste, shaving cream
• Butter, Ghee, dairy spreads, namkeens
• Feeding bottles, napkins for babies, clinical diapers
• Sewing machines
• Thermometer, glucometer and test strips, medical grade oxygen
• Tractor tyres, parts, tractors
• Fertilisers
• Drip irrigation system and other agricultural items

The Central government on Wednesday announced a tax bonanza by cutting the GST rates on hundreds of consumer goods. The GST Council, headed by finance minister Nirmala Sitharaman, simplified the goods and services tax (GST) system into a two-tier structure of 5 per cent and 18 per cent from a four-tier structure of 5, 12, 18 and 28 per cent.

Additionally, a new slab of 40 per cent was also introduced for the so-called sin goods and luxury items.