Effective September 22, 2025, India implemented a major "GST 2.0" reform, simplifying the tax structure into a three-tier system (5%, 18%, and 40%) by removing the 12% and 28% slabs. This,,{Link: DMI Finance, Tally Solutions, ClearTax} designed to lower costs on household items, includes a 40% rate for luxury/sin goods and mandates multi-factor authentication for,{Link: DMI Finance, Tally Solutions, ClearTax} large taxpayers.
Starting September 22, 2025, GST in India will be simplified to primarily two rates: 5% and 18%, with a special 40% rate on luxury and sin goods like tobacco and high-end vehicles. Many essentials, including certain medicines and foods, are now zero-rated, while several items see reduced rates.
Goods and services tax credit
According to the federal government, the maximum annual amount an individual may receive from July 2025 to June 2026 is $533, while a married or common-law couple could see up to $698 combined.
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%.
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).
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.
GST 2.0: Diwali 2025 Reforms – A Game-Changer for Consumption? The government has announced a major overhaul in the GST system, aimed at simplifying tax rates. The new GST structure will reduce the number of tax slabs to just two — 5% and 18% — replacing the current multi-tier system.
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.
How to Avoid GST on Overseas Purchases Legally
The GST Council's latest reforms have reshaped the GST tax slab for the travel and hospitality sector. With international and domestic travel steadily rising, these changes will directly affect how much you spend on air tickets, hotel bookings, dining, and even luxury travel.
When and How Will I Be Paid? If you are eligible for the 2025 GST Voucher (GSTV) – Cash and/or GSTV – MediSave and have signed up for a previous Government payout (e.g., 2024 GSTV), you will automatically receive your 2025 GSTV – Cash and/or GSTV – MediSave in August 2025.
The GST/HST credit payment period begins in July and ends in June of the following year: January and April payments. Based on your adjusted family net income from your 2024 tax return. July and October payments.
Canada will implement a faster GST rebate payment system starting January 5, 2026. Eligible individuals and families can receive up to $680 more quickly, reducing previous delays. The new system streamlines income verification and tax processing to speed up payments. and modest-income Canadians.
You will get your annual GST/HST credit, which was calculated using information from your 2024 tax return, in four payments. The CRA will make these payments on the 5th day of July and October 2025, and of January and April 2026.
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.
In a word, yes. Declaring luxury goods to US Customs is always a good idea. All of your purchases abroad are subject to declaration by US Customs, and luxury goods have the highest likelihood of being inspected.
Goods and Services Tax (GST) 2.0 reform, which came into effect from September 22nd, 2025, brought relief for the common people and boosts for businesses. One of the key GST updates under 2.0 reform is that it simplified the GST tax structure from a 4-slab (5%, 12%, 18% and 28%) to a 3-slab (5%, 18% and 40%).
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.
Tax changes for 2025, largely driven by the "One Big Beautiful Bill" (OBBBA) Act, introduce significant deductions for seniors, tips, overtime, and auto loan interest, expand the Child Tax Credit, and raise the SALT deduction cap to $40,000, while making several 2017 Tax Cuts and Jobs Act provisions permanent, including the seven tax brackets. Key changes include a $2,200 Child Tax Credit, a $6,000 senior deduction, deductions for qualified tips and overtime, and a permanent standard deduction increase.
Effective October 2025 period onwards, a new section for "Import of Goods" has been introduced in IMS wherein the Bill of Entry (BoE) filed by the taxpayer for import of goods including import from SEZ, will be made available in the IMS for taking allowed action on individual BoE.
GST impacts car prices directly by adding a tax to the vehicle's price. In 2025, GST rates on small petrol and diesel cars were reduced from 28% to 18%, lowering the price for buyers. This means you pay less when buying smaller, everyday cars. Electric vehicles enjoy a low GST of only 5%, encouraging cleaner choices.
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.
For the July 2025–June 2026 benefit year, the maximum annual GST amounts are: $533 – Single individual. $698 – Married or common-law couples. $184 – Per eligible child under 19.