India has announced a major tax reduction on hundreds of consumer goods, including items such as soaps and small cars, in an effort to boost domestic demand amid economic challenges posed by U.S. tariffs, state ministers said on Wednesday, September 3.
According to West Bengal minister Chandrima Bhattacharya, the new goods and services tax (GST) structure, set to take effect from September 22, is expected to result in a revenue loss of about ₹477 billion. The decision was made following discussions in the GST Council meeting.
The Council also approved a revised two-tier GST rate system of 5 percent and 18 percent, which will be rolled out from September 22 as part of the government’s strategy to stimulate consumption and support economic growth.
