Govt notifies new GST charges forward of pan-India rollout from 22 September| Enterprise Information

The Narendra Modi authorities has made GST reforms official by issuing an official notification on new GST charges, efficient 22 September 2025.

Finance Minister Nirmala Sitharaman heads the GST Council that rolled out the GST reforms and GST rationalisation on 4 September. (PTI)

This notification supersedes Notification No. 1/2017-Central Tax (Price) dated 28 June 2017. Now, states must observe go well with, as GST revenues are shared equally between the central authorities and the states.

“This strategic alignment is crucial to make sure a easy implementation and, crucially, to ensure that the advantages of GST rationalisation are successfully handed on to the tip client,” Saurabh Agarwal, tax associate at EY India, instructed Hindustan Instances over WhatsApp.

“It’s now crucial for industries to align their ERP (enterprise useful resource planning) methods, pricing selections and provide chain.”

On 4 September, the federal government introduced GST fee cuts on a whole lot of things—from soaps to small automobiles—in India’s greatest oblique tax reforms since items and providers tax first got here into impact on 1 July 2017. That was a results of GST rationalisation, whereby the construction was simplified to 2 tax slabs (5% and 18%) from 4 (5%, 12%, 18% and 28%) earlier.

A brand new 40% slab has been launched for tobacco merchandise and luxurious items, whereas compensation cess has been scrapped altogether.

The onus is now on commerce and trade to go on the advantages.

“With this readability in place, the ball is now within the trade’s court docket,” AMRG & Associates Senior Associate Rajat Mohan instructed PTI. “Companies should promptly replace their methods, revise pricing, and guarantee easy implementation of the brand new charges throughout provide chains.”

EY’s Agarwal believes there’s scope for extra GST reforms.

“The following logical and essential reform could be to carry key commodities comparable to electrical energy, aviation turbine gasoline, and pure gasoline underneath GST framework,” he stated. “This might be a pivotal step towards creating a very unified and environment friendly oblique tax system, which is crucial for India’s financial development.”