The GST Council is set to announce major reforms in the GST tax structure, with the new rates expected to roll out by September 22, 2025—just in time for the festive season.
Prime Minister Narendra Modi, in his Independence Day speech, promised “next-generation GST reforms” aimed at reducing the tax burden on businesses and the common man. If you are using TallyPrime, here’s everything you need to know about what’s coming and how it will impact you.
Effective date of new GST rates
|
Date of Implementation |
22nd September 2025 |
|
Date of GST Council Decision |
3rd and 4th September 2025 |
The new GST structure at a glance
Currently, GST is levied under a 4-tier structure (5%, 12%, 18%, and 28%). The new proposal simplifies this into:
- 5% (Merit rate): For essential goods and services
- 18% (Standard rate): For most other goods and services
- 40% (Special rate): On a limited set of ultra-luxury and sin goods (e.g., high-end cars, tobacco products)
This move is expected to:
- Reduce confusion in classification
- Make compliance easier for businesses
- Offer greater rate stability
The three pillars of GST reforms
The Centre has designed the reforms around three focus areas:
- Structural reforms – Correcting inverted duty structures, resolving classification disputes, and providing predictability in taxation.
- Rate rationalisation – Reducing taxes on commonly used and aspirational goods while bringing stability in slabs.
- Ease of living for taxpayers – Easier startup registrations, pre-filled returns, and faster refunds.
What this means for TallyPrime users
- Quick updates: Once the new GST rates are notified (likely 5–7 days after the GST Council meeting on Sept 3–4), you can easily update them in TallyPrime without hassle. Check out how.
- Automatic compliance: From invoicing to return filing, TallyPrime ensures your GST calculations reflect the latest government rules.
- Error-free filing: With automated checks, pre-filled reports, and instant reconciliation, your GST filing remains smooth and compliant.
