TaxTMI 
TaxTMI 
TaxTMI 
1. Operationalization of the Goods and service tax appellate tribunal. This is going to bring a sea change in writs being filed with the jurisdictional high courts on GST matters allowing time for top legal experts and the top courts to focus on legal interpretations rather than on procedural issues.
2. Reduction of GST rate on cement from 28% to 18%. Ideally, the rate for cement should have been either 12% or a maximum of 18% right from inception. This rate on cement has wider implications as any user of cement very rarely gets an opportunity to avail ITC like when used for repair jobs where cost is not capitalised. Thus including a common man who construct an affordable home for self use, the entire construction industry which constructs huge high rise apartments or malls have so far had the burden of higher rate on cement. This reduction in rate from 28% to 18% is a right and bold step for which the construction industry is thankful to the team behind this proposal.
3. The abolition of GST on health and life insurance is going to benefit the common man. Even super senior citizens who were more than 80 years were also required to pay GST on health insurance. The abolition of the gst on health and life insurance is a commendable one, provided there are no hidden conditions attached to it when operationalised with effect from 22/09/2025.
4. The reduction of rate from 12 to 5 on agriculture sector like diesel engine for irrigation, tractor for cultivation are going to benefit farmers in a big way by way of marginal reduction in cost as they are out of ITC mechanism.
5. The reduction in rate from 12 to 5 for the renewable energy sector is the most welcome step. The rate was only 5% during initial period from 01/07/2017 till 30/09/2021. The increase in rate to 12% with effect from 01/10/2021 shall be effective only up to 21/09/2025. This is a welcome step which significantly brings down the project cost.
6. The reduction in rate pertaining to textile sector in applicable cases is likely to bring down the burden as the industry is striving hard for survival with several challenges such as cost of yarn, cost of labour, competition from neighbouring countries etc. The rate reduction is not applicable in few cases where the cost exceed 2500 as the new rate is 18 as against existing 12.
7. The reduction in rate from 28 to 18 pertaining to TV, AC etc are good initiatives as these goods are not luxuries now. The final prices may come down marginally once the rate reduction is implemented.
8. The reduction in rate from 28 to 18 on transport sector is going to benefit even the common man as the cost of tyre, small cars and even the cost of three wheeler which is used for earing income on a daily basis by drivers shall come down marginally.
9. The reduction in rate on footwear costing up to 2500 per pair, reduction in rate on hotel accommodation costing up to 7500 per day are all good initiatives which reduces the burden of consumer.
10. Wherever the rates are being increased from the existing rates are being fixed in such a manner that in most of the cases it does not affect the common man who is not even under the Income Tax net. The Government as well as the entire team of the GST Council deserves appreciations for the bold initiatives taken in the council meeting held on 03/09/2025 which is historic one.