GST Overhaul: Simplifying Business, Empowering Growth

The Central Board of Indirect Taxes and Customs is enacting reduced GST rates on 375 items from September 22. The new reform includes a simplified GST registration scheme to aid small businesses and aims at ensuring a fairer tax structure, enhancing seamless adaptation and economic growth.

The Central Board of Indirect Taxes and Customs is poised to implement reduced GST rates on 375 items starting September 22. CBIC Chief Sanjay Kumar Agarwal emphasizes the importance of proactive outreach by tax officers to support trade and industry through this transition.

Agarwal highlights the benefits of increased awareness, which aims to minimize confusion and assist businesses, particularly small traders and MSMEs, in adapting and flourishing under the new tax structures. The GST Council has approved a two-tier system of 5 and 18 percent, excluding tobacco and ultra-luxury items, effective by September 22.

Additionally, the Council introduced a simplified GST Registration scheme for small businesses, operational from November 1, designed to ease the registration process and expedite refunds. These reforms signal a shift towards a more citizen-centric and equitable tax framework, fostering production, employment, and exports.

(With inputs from agencies.)