GST 2.0: The Great GST Reset

The webinar focused on key GST Council recommendations encompassing trade facilitation, rate rationalization for both goods and services, and practical implications of the changes. This knowledge session provided a practical briefing for tax professionals, CFOs, and compliance officers navigating the evolving GST regime.

Key Discussion Points

• Trade Facilitation: Measures included the operationalization of the Goods and Services Tax Appellate Tribunal (GSTAT) by the end of September 2025, mandatory risk-based provisional refunds, and the amendment to the Place of Supply for Intermediary Services.
• Rate Rationalization for Services: Discussed changes such as the tax on luxury/sin sector services (Casinos, Race Clubs, etc.) increasing to 40% with ITC, and the GST on individual health and life insurance moving to Exempt status.
• Rate Rationalization for Goods: Focused on major rate cuts to 5% for sectors like agriculture, renewable energy, and leather. Also covered the reduction of GST on many consumer electronics and motor vehicles (e.g., A/C, dishwashers, small cars, motorcycles) from 28% to 18%.
• Practical Implications: Addressed the application of Time of Supply rules effective 22 September 2025, the need to revisit cost structures due to anti-profiteering norms, and issues surrounding Input Tax Credit (ITC) accumulation.

Key Takeaways

• Gain a comprehensive understanding of recent GST developments and their impact on various business operations.
• Re-evaluate tax positions, especially considering the movement of certain services (like budget hotels) and goods to 5% without ITC, to ensure compliance and optimize tax planning.
• Learn about the importance of updating ERP/accounting systems and maintaining robust documentation to manage transitional rules and new post-sale discount provisions.