MP News: The GST Council has announced significant benefits for the common people, especially considering the upcoming festival season. GST rates have been reduced on electronics, automobiles, insurance, and other everyday items. However, a side effect is a slowdown in the market. Most people are waiting for the new rates to come into effect, causing a 70-80% drop in purchases.
Hari Kant Samadhiya, former president of the Gwalior Automobile Association, explained that following the government's reduction in GST rates, companies are strategising. Companies are hesitant to adjust the compensation cess, leading them to consider discontinuing certain schemes. Regarding car purchases, only bookings are currently being accepted; actual purchases will commence after 22 September. Savings of up to ₹50,000 can be expected on a small car.
Kedarnath Gupta, an electronics businessman, stated that GST rates on electronics are set to decrease from 28% to 18%. However, the government's announcement was delayed until 22 September, causing a significant market slowdown. Purchases have dropped by up to 80%. People are now waiting for the 22nd of September. Savings of ₹10,000 on a 75-inch LED TV and approximately ₹3906 on a 55-inch LED TV (priced at ₹1 lakh and unspecified price respectively) are anticipated.
GST has been completely abolished on health and life insurance. Pranav Kumar Das, an insurance consultant, reported that no one is willing to purchase insurance until 22 September. People are even delaying renewal premium payments. While consultants are warning of policy lapse and loss of risk cover, people remain unconvinced, believing the delay will not have significant consequences. Furthermore, insurance companies' promotional competitions have either been cancelled or postponed.
The GST Council's reforms have significantly simplified the GST registration process for taxpayers. The council has promised GST registration within just 3 days. This will streamline business operations and eliminate the need for extensive bureaucratic processes. Notably, these registrations will be granted without verification.
This new scheme will benefit approximately 96% of new registrants. The scheme will commence on 1 November 2025. Additionally, 90% of GST refunds will be provided provisionally. CA Pankaj Sharma commented that simplifying the GST registration process is a positive step towards improving ease of doing business, saving considerable time.
