Connect with us

Business

GST revamp: What are the latest tax rates on cars, gold, mobile phones, EVs, cigarettes? Check details – The Times of India

Published

on

GST revamp: What are the latest tax rates on cars, gold, mobile phones, EVs, cigarettes? Check details – The Times of India


The Goods and Services Tax (GST) Council, chaired by Union finance minister Nirmala Sitharaman, on Wednesday announced the most extensive revamp of the indirect tax system since its rollout in 2017.The reform introduces a simplified two-slab structure of 5% and 18%, alongside a new 40% slab for luxury and sin goods.The new rates, except for tobacco where cess continues, take effect from September 22, the first day of Navratri.

Diwali Gift for Consumers: Govt Slashes GST Across Sectors, Prices to Drop from Sept 22

Revenue secretary Arvind Shrivastava estimated the net fiscal implication of the changes at Rs 48,000 crore. He added the measures are designed to spur consumption and improve compliance.

GST rate cuts

Sitharaman underlined that the reforms were aimed at the common man, stating, “Every tax levied on common man’s daily use items have undergone a rigorous look, and in most cases, the rates have come down drastically”.

Cars

Buyers of small cars stand to benefit the most. Small cars will now attract 18% GST, reduced from the earlier 29% (28% plus 1% cess).For GST purposes, small cars are defined as petrol, LPG or CNG vehicles with an engine capacity of up to 1200 cc and length up to 4000 mm. In the case of diesel cars, the definition covers vehicles with engine capacity up to 1500 cc and length not exceeding 4000 mm.Large vehicles exceeding 1500 cc or longer than 4000 mm will fall into the new 40% GST slab.The same rate will also apply to all utility vehicles, including SUVs, MUVs, MPVs and cross-over vehicles, provided they have an engine capacity above 1500 cc, a length over 4000 mm, and a ground clearance of 170 mm or more.Unlike the earlier regime that combined 28% GST with a 17–22% cess, the new framework consolidates this into a single 40% rate without cess.

Bikes

Two-wheelers have also seen a rationalisation. Motorcycles up to 350 cc engine capacity will attract 18% GST, reduced from 28%. The 18% rate also applies to 350 cc models.Motorcycles exceeding 350 cc engine capacity have been placed in the 40% bracket, aligning them with the treatment of luxury and high-powered vehicles.This change is expected to encourage mass-market two-wheeler sales, especially in rural and urban middle-class markets, while continuing to tax premium motorcycles at a higher rate.

Electric Vehicles

Electric cars remain unchanged, continuing to be taxed at 5%.

Health Insurance

A major relief comes for individuals purchasing life and health insurance. These policies will now be exempt from GST. Earlier, these services attracted 18%, adding to premium costs.Exemption is expected to make policies more affordable, widening insurance coverage in a country where penetration levels remain low.

Cigarettes and tobacco

The GST Council has shifted cigarettes, cigars, pan masala, and chewing tobacco into the 40% slab. However, until compensation cess loans are fully repaid, the existing 28% GST plus cess regime will continue.Analysts noted that revenue neutrality is a priority for the government, as cigarette taxation contributes significantly to exchequer inflows. The move balances public health concerns with the need to curb illicit trade.

Alcohol

Alcohol remains outside the purview of GST altogether. It continues to be taxed separately through state excise duties, meaning the GST overhaul has no bearing on alcohol pricing.States will retain autonomy in setting alcohol taxes, a key revenue source for their budgets.

Gold

There has been no change in the taxation of precious metals. Gold and silver jewellery remain taxed at 3%, with an additional 5% GST on making charges. Gold bars and coins also continue to face 3% GST.With no direct impact from GST 2.0, demand in the bullion market is expected to remain steady, especially during the festive season when purchases peak.

Mobile Phones

Despite repeated industry requests, mobile phones remain taxed at 18%. ET reported that the India Cellular and Electronics Association (ICEA) had sought a 5% slab, calling the current levy “regressive” and reminding that pre-GST state VAT on mobiles was mostly capped at 5%.Despite the wider rate cuts across consumer goods, mobile phones remain at 18% GST, unchanged under the new regime. As per ET, the India Cellular and Electronics Association (ICEA) had urged for a 5% slab, calling the current levy “regressive.”The industry argued that mobile phones are a basic digital necessity, not a luxury.ICEA highlighted that pre-GST, most states had capped VAT at 5%. With domestic production rising to Rs 5.45 lakh crore in FY25 and exports crossing Rs 2 lakh crore, industry bodies stressed that lower GST would have boosted affordability and domestic demand.





Source link

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

Starmer says ‘tide could be turning’ on shoplifting epidemic

Published

on

Starmer says ‘tide could be turning’ on shoplifting epidemic



Sir Keir Starmer claimed “the tide could be turning” against shoplifting as he set out the Government’s efforts to crack down on retail crime.

The Prime Minister said shop thefts were “slightly down” in the latest figures and he wanted wider use of technology which allows CCTV footage to be shared immediately with the police.

His comments came as a think tank highlighted figures showing 67% of shoplifting offenders go on to commit another offence within 12 months, up from 55% before the pandemic.

In an address to the Usdaw shopworkers’ union, Sir Keir said: “It’s disgraceful that people just working in their shop have to take abuse from customers.

“It’s disgraceful that people feel sick to the stomach thinking about how they’re going to get through the day and it’s disgraceful that people can have their lives and livelihoods ruined by persistent shop theft.”

He said the Government has put an extra 3,000 neighbourhood police officers on the streets and scrapped the “ridiculous”  rule which left theft of goods worth less than £200 “not properly investigated” by police.

“That was a shoplifters’ charter, and we’ve ended it and not before time,” he said.

“We’ve toughened up punishment too. We’re giving police stronger powers, making the abuse and assault of retail workers a specific crime and giving you the same protections as emergency workers.”

Sir Keir said he was “not blind to how big this challenge is” but said the number of people charged had gone up 17% in the latest statistics and shop theft was down.

The latest Office for National Statistics (ONS) data showed shoplifting offences fell slightly last year, down from 516,611 in 2024 to 509,566 in 2025.

Sir Keir said: “It’s only slightly down,  but the tide could be turning.”

The Prime Minister’s speech came as the Centre for Social Justice (CSJ) warned of a high street crime epidemic.

The centre-right think tank highlighted figures uncovered by former Tory leader Sir Iain Duncan Smith through parliamentary questions which showed the extent of repeat offending.

The think tank’s analysis showed the average number of offences committed by shoplifters has nearly doubled in five years, rising from 5.5 to 9.1 offences per convicted thief.

Sir Iain, the CSJ’s chairman, said: “Communities across Britain are suffering from a high street crime wave.

“Set against years of economic difficulties, there is a risk that some of our town and city centres are left permanently hollowed out.”

A standalone offence for assaulting a retail worker is set to be introduced in the Crime and Policing Bill going through Parliament.

But the two Houses of Parliament are currently in a tussle over the final draft of the Bill as the end of the parliamentary session nears.

Almost 80% of shop workers said they experienced verbal abuse, more than half said they were threatened by a customer and 10% said they were assaulted in the latest annual survey by retail trade union Usdaw.

The small drop in shoplifting in the ONS figures may reflect a change in how such offences are recorded.

Offences where someone has entered a retail premises, steals, then either uses or threatens violence against staff or other people should be classed as robbery of business, police forces were advised in April last year.

This may account for the steep increase in the number of such robberies recorded, which rose 78% to 26,158 in 2025.

Joanne Thomas, Usdaw general secretary, said the incoming legislation delivers “much-needed protection of retail workers’ law”.

She said: “While there has been a welcome small decrease in shoplifting across last year, the fact is retail crime continues to be a significant issue for the sector and particularly staff.

“Usdaw’s last survey found that this is in no way a victimless crime, with two-thirds of attacks on retail staff being triggered by theft or armed robbery.

“Having to deal with repeated and persistent offences can cause issues beyond the theft itself, like anxiety, fear and physical harm to retail workers.”

Shadow home secretary Chris Philp accused the Prime Minister of “brazen cheek”, saying Sir Keir was “part of the problem, not the solution”.

He said: “Shoplifting is up 8% under Labour, made worse by a drop in total police numbers of 1,300 in the last year alone.

“Starmer is abolishing prison sentences under a year, which means virtually no shoplifter will ever go to prison.

“The Conservative plan to take back our streets will see 10,000 extra police hotspot patrol high crime areas, combined with a tripling of stop and search and widespread use of live facial recognition to catch wanted criminals.

“Only the Conservatives have a plan to fix this.”



Source link

Continue Reading

Business

Gold prices rise rebound in Pakistan after recent decline – SUCH TV

Published

on

Gold prices rise rebound in Pakistan after recent decline – SUCH TV



Gold prices in Pakistan have risen again at the start of the business week after several days of decline, according to the All Pakistan Bullion Market.

The price of gold per tola increased by Rs 800, reaching Rs 493,962.

Similarly, the price of 10 grams of gold rose by Rs 686 to Rs 423,492.

In the global market, gold also recorded an increase of $8 per ounce, reaching $4,716.

Experts say global economic uncertainty, currency fluctuations, and investor preference for safe-haven assets are driving the upward trend in gold prices.

They add that changes in international markets directly impact Pakistan’s local bullion rates, leading to continued fluctuations in domestic prices.



Source link

Continue Reading

Business

Anta: The Chinese sports brand taking on Nike and Adidas

Published

on

Anta: The Chinese sports brand taking on Nike and Adidas



Now one of the biggest sportswear firms, Anta’s rise follows a playbook adopted by many Chinese giants.



Source link

Continue Reading

Trending