GST Reforms: Boost for Auto, Pharma; Setback for Airlines

Swift Summary:

• The GST Council authorized rate cuts on September 3, 2025, benefiting sectors such as auto, insurance, pharmaceuticals, consumer appliances, adn renewable energy.
• Stock market reacted mixedly to the changes – Sensex ended up 0.2%.
• Key sectoral impacts:

– Airlines criticized higher GST for premium seating.
– vegetable oil producers called for resolving inverted duty structures left unaddressed.
– Labor sectors faced discontent with the labour charges GST hike from 12% to 18%.

• Textile industry expressed a mixed reaction:

– Welcomed rationalization but opposed an 18% rate on garments priced above ₹2,500.
– Speculated affordability concerns for conventional attire and handloom wear.

• Auto manufacturers applauded tax reductions across vehicle categories but dealers raised concerns about short-term sales delays until new rates come into effect on september 22.
• insurance sector showed mixed responses:

– GST exemption for life/health insurance welcomed for promoting accessibility but removal of input tax credits seen as costlier for providers.

• Healthcare celebrated reduced taxes (from 12% to a uniform rate of 5%) on medtech and diagnostic products for improving patient affordability.
• Renewable energy hailed the lowered taxes (from 12% to onyl five) lowering solar-energy lifecycle entry tech clean-green rollout nationwide scale feasibilities implementations motivations workspace productivity…^[original data ends abruptly perhaps some truncation elements].

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