Udayan Adhye Breaks Down GST Reforms: What the Latest Changes Mean for You

Udayan Adhye, a popular finance influencer, has discussed the recent GST cut. The Indian government has introduced significant changes to the Goods and Services Tax (GST) regime, effective September 22, 2025. These changes aim to simplify the tax structure, reduce prices, and promote economic growth.

Major Changes:

Automobiles: GST on small cars and two-wheelers under 350cc has been reduced from 28% to 18%, resulting in significant savings for consumers. For example, a ₹20 lakh car will now cost ₹1.5 lakh less.
Electronics: GST on TVs, ACs, and dishwashers has been standardized at 18%, making these essential items more affordable.
Insurance: Term and health insurance premiums are now exempt from GST, providing direct savings to policyholders.

Impact on Consumers:

According to Udayan Adhye, these GST cuts can have a significant impact on consumers:

Increased Affordability: Reduced prices on essential items can lead to increased consumption and economic growth.
Savings: Lower GST rates can result in direct savings for consumers, which can be allocated towards other essential expenses or investments.
Financial Planning: With more disposable income, individuals can focus on long-term financial planning, such as investing in stocks, mutual funds, or retirement plans.

Sector-Specific Changes:

Agriculture: GST on agricultural machinery and equipment has been reduced to 5%, benefiting farmers and promoting agricultural growth.
Healthcare: GST exemption on health insurance premiums will make healthcare more affordable and accessible to the masses.
Renewable Energy: GST on renewable energy equipment has been reduced to 5%, promoting sustainable energy solutions ² ³.

The GST reforms 2025 are an important step towards simplifying the tax regime, promoting economic growth, and increasing affordability. With these changes, the government aims to boost consumption, reduce prices, and improve the overall business environment in India.

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