The article discusses the completion of GST 2.0 in India, the removal of the GST compensation cess, and the introduction of new excise rates on demerit goods such as cigarettes. It highlights how the excise notification could trigger a tax shock, affecting tobacco growers, small retailers, and the broader economy. Monthly GST collections in late 2025 remained robust, exceeding Rs 1.7–1.9 lakh crore.
In 2025, as part of the completion of GST 2.0.
They consistently exceeded Rs 1.7–1.9 lakh crore.
Cigarettes, especially those made from Flue‑Cured Virginia tobacco.
FCV tobacco growers in Andhra Pradesh and Karnataka, small retailers, and cigarette manufacturers.
It could push legal cigarettes beyond affordability, increasing illicit trade and eroding market capitalisation of cigarette manufacturers.
Get VAT and indirect tax news delivered to your inbox twice a week.
No spam. Unsubscribe anytime.
BWAUTOWorld · 5 days ago
The article argues that India’s 2026 budget should overhaul the GST structure, financing options, and fleet economics to accelerate electric vehicle adoption. It proposes reducing GST on batteries and charging services to 5%, reclassifying battery swapping as an energy service, extending vehicle life norms, and providing green credit and toll waivers to lower ownership costs and support large fleet conversions.
A2Z Taxcorp · 6 days ago
The article explains that the GST Council’s exemption of individual health and term insurance policies effective 22 September 2025 did not lower premiums because insurers lost the ability to claim input tax credit on operating expenses, making the exemption cost‑neutral. It outlines insurers’ options—absorbing costs, raising premiums, or recalibrating commissions—and calls for structural fixes such as partial ITC restoration and concessional GST rates.
BhaskarEnglish · 7 days ago
The 2025 GST exemption for individual health and term insurance in India has not led to significant premium reductions because insurers cannot claim input tax credit on operating expenses. The article explains how insurers absorb costs or adjust premiums, and outlines industry demands for partial ITC restoration and other reforms.
LinkedIn Article by Darda Advisors LLP · 13 days ago
The Supreme Court of India clarified that a 'part' of machinery must functionally participate in the machine’s operation, while structures that merely support do not qualify. It reaffirmed that tariff classification is a rule‑based exercise grounded in the Customs Tariff and HSN, and that end‑use is not determinative unless the tariff allows it. The ruling also confirmed that HSN explanatory notes carry binding interpretive value.
TaxScan · 18 days ago
The Madras High Court has ruled that input tax credit (ITC) claimed by dealers is provisional until they provide proof of the underlying sale transaction. The court directed the dealer to submit the required documentation, emphasizing that ITC cannot be confirmed without supporting evidence. This decision underscores the importance of maintaining proper records for GST compliance.
IRISGST · 19 days ago
The article presents the GST compliance calendar for January 2026, detailing key due dates for monthly returns, payments, and the annual return. It serves as a reference for businesses to plan filing and payment schedules. The calendar is hosted by IRISGST and includes an interactive selector for other months and years.
