The 56th GST Council Meeting held on 3rd September 2025 ushered in a transformative set of reforms aimed at simplifying compliance, reducing tax burden, and stimulating growth across sectors.
Key Highlights:
‣ Streamlined Two-Rate GST Structure to Reduce Classification Disputes
‣ Intermediary Services to Be Treated as Exports Based on Recipient’s Location
‣ Post-Sale Discounts Can Be Adjusted via Credit Notes Without Pre-Agreed Contracts
‣ Risk-Based Provisional Refunds for Zero-Rated Supplies and IDS
‣ GST Refunds Allowed for Low-Value Export Consignments (Below ₹1,000)
‣ Simplified GST Registration for Small Taxpayers and E-Commerce Sellers
‣ Zero GST on Individual Life and Health Insurance Premiums
‣ GST Appellate Tribunal (GSTAT) to Be Operational by December 2025
‣ Major GST Rate Cuts Across Food, Pharma, Textiles, and Daily-Use Items
‣ Higher GST Rates (40%) on Casinos, Betting, Luxury Vehicles, and Online Gaming, Tobacco
