The Morning Brief NextGen GST: A Conversation Beyond Cheaper Goods
Sep 4, 2025
Join Bipin Sapra, a partner and leader in Indirect Tax & Economic Policy at EY, as he dives into India's transformative GST reforms. He discusses the simplifying shift from four tax slabs to two and the implications for consumers and businesses. Challenges like compliance issues and revenue disputes between the Center and States are explored. Bipin also highlights how these changes could benefit MSMEs and enhance export competitiveness while suggesting necessary legislative adjustments to ensure efficiency in the new tax system.
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Prepare To Pass Benefits Quickly
- Expect industries to aim to pass benefits by September 22, but transitional costs and stock issues may delay pass-through.
- Firms should prepare pricing and inventory plans to speed consumer benefits, says Bipin Sapra.
Stranded Cess Credits Risk Transition Costs
- Phasing out compensation cess creates stranded cess credits across dealers and manufacturers.
- Bipin Sapra warns a legal mechanism is needed to refund or subsume these credits into GST payments.
Major 28% Items Shift To 18%
- Many 28% goods like consumer electronics, cement and small cars move to 18%, boosting demand if savings are passed on.
- Bipin Sapra expects consumption gains especially in pharmaceuticals, medical devices and durables.