Yes, GST in India has been significantly revised, with major changes effective September 22, 2025, known as the "GST 2.0" reforms. The overhaul simplifies the structure into primarily two main slabs of 5% and 18%, while reducing rates on200+ items, including electronics, cars, and daily essentials.
Effective October 1st, 2025, a new set of rules for GST return filing will come into effect. This marks the first filing cycle under the GST 2.0 reforms, aimed at improving transparency, control, and accuracy in Input Tax Credit (ITC) management through the Invoice Management System (IMS).
Key Changes at a Glance: New GST Rates
This means that the messy middle ground, the 12% and 28% slabs, is gone. Products once taxed at those rates will now either slide down to 5% or 18%, or move up to 40% depending on their category.
For any standard-rated supplies of goods or services that you make on or after 1 Jan 2024, you must charge GST at 9%. For instance, if you issue an invoice and receive payments for your supply on or after 1 Jan 2024, you must account for GST at 9%.
If the CRA determines that you are eligible for the GST/HST credit based on your 2024 tax return and that you will receive payments, you will receive a GST/HST credit notice in July 2025. It will show how much you will get and what information was used to calculate the amount.
India's GST regime is undergoing a landmark transformation with the 56th GST Council meeting unveiling GST 2.0 - next-generation reforms simplifying tax slabs to 5%, 18%, and 40%. Effective from September 22, 2025, these reforms aim to ease compliance, boost consumption, and fuel economic growth.
What was the decision in 56th GST council meeting? The long-discussed proposal for a two-tier GST structure has now been approved (and implemented starting from 22nd September 2025): 5% GST: Applicable to most essential and everyday goods and services. 18% GST: For higher-value products and services.
Maximum marginal rate is the highest rate of tax at any income level. This means for those with incomes between Rs 2 crore and Rs 5 crore, 39% will be the highest applicable tax rate, and for those with incomes above Rs 5 crore, it will be 42.74% — the highest tax rate since 1992.
GST Rate and Slab Changes in September 2025
GST rate cuts on 200 items happened from 22nd September 2025. 90% of items in the current 28% slab are moved to the 18% slab. Almost 99% of the items in the 12% slab are moved to the 5% slab.
How much will I receive in October 2025? It depends on your 2024 adjusted family net income, marital status, and number of children. Maximum amounts are $533 (singles), $698 (couples), and $184 per child.
2022, Works contract services provided to Central and State Government, or Local Authorities, which were earlier eligible for concessional rate of 12% GST,would attract GST at the rate of 18% in view of amendment carried out in notification No. 11/2017- Central Tax (Rate) vide notification No.
20th August 2025
Due to the incessant rains in various parts of Maharashtra, the government has extended GSTR-3B due date for July 2025 from 20th August to 27th August 2025.
With effect from 1st October 2025, the Indian GST regime is set to introduce a series of important changes in how returns, credits, and compliance are handled. These changes aim to improve accuracy, reduce disputes, and align law and system behavior more closely.
New GST Payment Increase Coming in 2026: What Canadians Need to Know. Canadian taxpayers will see a confirmed 2% GST payment increase in 2026, offering some welcome financial relief at a time when the cost of living remains high.
Total Net GST revenue for October 2025 stands at ₹1,69,002 crore, which is 0.6% higher(monthly growth) and 7.1% higher (yearly growth) than the corresponding period last year at ₹1,68,054 crore.
Other countries collect 10 to 60 per cent of the tax. India collects 42.74, Canada 33, US 37, Finland 56.95, France 45, UK 45, Germany 45, Hong Kong 15, China 45, Singapore 22, Japan 55.97, Australia 45, and Singapore 22 per cent of tax charges.
According to government reports, while over 7 crore people file tax returns, only a fraction of them actually pay taxes because many fall below the taxable income threshold or use deductions to reduce liability.
The key categories of goods and services included under the special 40% GST slab are, Tobacco and related intoxicants as sin goods (e.g., cigarettes, bidis, pan masala, caffeinated drinks) Drinks with high sugar content and caffeinated. Super-luxury and luxury 4-wheelers, 2-wheelers and personal use yacht, aircraft, ...
The following category of tax persons are exempted from payment of 1% of GST in Cash 1. Registered taxpayers who have paid income tax above Rs 1.00 in Income Tax during the last two years continuously 2. Taxpayers who have zero-rated supplies without payment of duty and claimed refund of more than Rs 1.00 lac 3.
India's Goods and Services Tax (GST) system has entered a new era with the rollout of GST 2.0, effective from September 22, 2025. The Council has simplified the structure into a 5% slab for essentials, 18% for standard goods, and 40% for luxury/sin items, replacing the earlier complex categories.
What is New in 2025 HST/GST Credit Increase? Every year, the CRA adjusts federal tax benefits based on inflation. For 2025, the CRA HST credit will rise by 2.7%, starting with the July 2025 GST HST payment. While this increase is lower than 2024's 4.7%, it still brings welcome support for millions across the country.
As of 2025, the GST rate in Singapore is 9% for all taxable goods and services (except for nil-rated). With the GST rate change, as laid out by the Inland Revenue Authority of Singapore (IRAS), it has become even more important to be at par with the recent amendments.
What are the new GST rate slabs for 2025 in India? The slabs under the 2025 Next-Gen GST Reforms are 0% (exemption), 5% and 18%. A new 40% GST slab has been introduced for luxury goods like premium cars and bikes, and sin goods like cigarettes and tobacco.
Eligibility Criteria for the GST/HST Credit Payment 2025
You may qualify for the GST/HST credit payment 2025 if you meet the following conditions: You must be a resident of Canada for income tax purposes. You must be at least 19 years of age before the payment month, or meet other qualifying conditions if younger.