GST Reform 2025: This is how GST reform will boost development, Mukesh Ambani lists the benefits

GST Reform 2025: The Government of India has recently implemented a major change in the Goods and Services Tax (GST), simplifying the GST slabs and limiting it to only two rates—5% and 18%. Additionally, a special tax of 40% has been imposed on products like tobacco, cigarettes and gutkha. This new rule will come into effect from September 22, 2025, with the start of the upcoming festive season. The move is expected to benefit both consumers and businesses.

Huge cut in tax on everyday items

Under the new system, many items of everyday use like butter, ghee, cheese, snacks, toothpaste, etc. will now attract only 5% GST. Earlier these items were taxed at the rate of 12% or 18%. This change will provide great relief to common consumers in shopping for these essential items, especially during the festive season when expenses increase.

Mukesh Ambani praises GST reform

Reliance Industries Chairman Mukesh Ambani has termed this GST reform as a historic and progressive step. He said,

"This is a progressive step that will not only make products affordable for consumers but will also make it easier to do business. This step will increase consumption in the country and help reduce inflation."

Mukesh Ambani called it a step to promote 'consumption based development' and said that it is a positive sign for India's economy. He also described this reform as beneficial for small and medium enterprises (MSME), which are the backbone of India's economy.

Big announcement of Reliance Retail

The country's largest retail company, Reliance Retail, has announced to give the benefit of this tax cut to its customers from day one. The company's executive director Isha Ambani said,

"We want to give benefits to our customers on every occasion when something is cheaper. This reform is beneficial for both customers and businessmen."

Reliance Retail also said that this tax cut will benefit all stakeholders involved in their supply chain—farmers, manufacturers, small businesses and grocery stores.

What will the general public get?

The new GST structure will not only provide cheaper products to consumers, but it will also create new opportunities for small businesses, manufacturers and suppliers. Especially, during the festive season when the expenses of families increase, this tax cut will bring great relief to the general public. Due to lower tax rates, the prices of essential commodities will come down, which will increase the purchasing power of consumers and boost demand in the market.

Special tax on tobacco products

A special tax of 40% has been imposed on harmful products like tobacco, cigarettes and gutkha. This move will not only increase the revenue of the government but will also help in promoting public health. Increasing the prices of these products can help discourage their use.