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Indiau2019s GST Reforms 2025 introduce simplified slabs of 0%, 5%, 18% and 40%, reducing costs on essentials, making healthcare affordable, boosting auto and real estate sectors, and improving compliance easeu2014driving growth for businesses and households alike.
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GST REFORMS 2025 Impact on Daily Life, Healthcare, Automobiles Effective September 22, 2025 By JS Financial Services
Introduction • India’s biggest GST revamp since 2017 • Old slabs (5%, 12%, 18%, 28%) → Replaced by 0%, 5%, 18%, 40% • Objectives: • Make essentials more affordable • Simplify compliance for businesses • Support consumption & GDP growth www.jsfinancials.in
New GST Structure • 0% (Exempt): • Fresh milk, curd, eggs, unpackaged food grains, healthcare, education, life & health insurance, life-saving drugs • 5%: • Packaged foods, soaps, toothpaste, essential medicines, agricultural equipment, basic personal care services • 18%: • Consumer durables (ACs, TVs >32”, dishwashers), small cars, two-wheelers ≤350cc, cement, construction materials • 40%: • Luxury cars, aerated drinks, betting/online gaming, luxury services, premium sports events www.jsfinancials.in
Consumer Impact • Essentials cheaper → groceries, medicines, toiletries down from 12–18% to 5% • Healthcare relief → Insurance premiums & life-saving drugs exempt • More disposable income → Higher household demand • Immediate price cuts by FMCG brands to pass on benefits www.jsfinancials.in
Healthcare & Insurance • Health & life insurance premiums moved to 0% • Select drugs exempt → broader access to treatment • Families encouraged to buy insurance without GST burden • Major step towards improving healthcare affordability in India www.jsfinancials.in
Automobile Sector • Small cars & two-wheelers shifted from 28% → 18% • More affordability in entry-level cars & bikes • Boost to rural & semi-urban mobility demand • Expected revival across passenger vehicle & two-wheeler sales www.jsfinancials.in
Construction & Real Estate • Cement & construction inputs down to 18% • Lower project costs → affordable housing revival • Developers benefit from reduced input taxes • Real estate sector likely to see renewed growth www.jsfinancials.in
Broader Economic Impact • GDP expected to grow by +0.7–0.8% in FY 2025–26 • MSMEs benefit → reduced paperwork, faster refunds • Exporters gain from simpler compliance & lower costs • Stock markets responded positively → Auto & FMCG rallied www.jsfinancials.in
Market Reactions • Auto stocks surged: Anticipation of higher vehicle demand • FMCG sector rallied: Price cuts → festive season boost • Analysts predict stronger consumer demand cycle in 2025–26 www.jsfinancials.in
Challenges in Transition • Businesses must reclassify goods/services under new slabs • Accounting & billing software require updates • Input Tax Credit (ITC) claims must be revalidated • Risk of penalties if compliance is delayed or incorrect www.jsfinancials.in
Role of Professional Support • Smooth transition requires expert guidance • Businesses need: • Correct GST classification • Filing & audit support • Advisory on tax planning & exemptions • Professional help ensures savings + compliance www.jsfinancials.in
Contact Us • JS Financial Services Advantage JS Financial Services +91 73400 02251 info@jsfinancials.in www.jsfinancials.in • 15+ years of tax & advisory expertise • 500+ clients across 30+ countries • Services: • GST & Tax Compliance • Accounting & Bookkeeping • Auditing & Assurance • Legal & Advisory • Startups, MSMEs & FDI support • Motto: “Our Expertise, Your Success”
Thank You! www.jsfinancials.in