NAFPO seeks extension of Section 80PA for FPOs beyond AY 2024-25

The Next-Gen GST Reforms undertaken in the 56th meeting of the GST Council on 3 September 2025 under the leadership of the Hon’ble Prime Minister Shri Narendra Modi mark the most far-reaching change in India’s indirect tax system since the introduction of GST in 2017. The erstwhile structure of multiple slabs has been replaced with a clean framework of two rates: 5% and 18%, while a higher slab of 40% has been reserved for luxury items. The Hon’ble Chief Minister Shri Yogi Adityanath, speaking in Gorakhpur during Seva Pakhwada, described the reform as a true festival of relief that will begin with Navratri and touch every household in the country. The new structure lightens the daily expenses of ordinary families as basic necessities such as milk, cheese, soap, toothpaste, shampoo, bicycles and baby products are taxed at just 5% or exempted entirely. Education has been made more affordable for young students through the removal of taxes on notebooks, pencils, maps and essential study materials. This reform places knowledge and basic dignity at the heart of India’s tax framework, allowing citizens to save more for their future. Farmers stand to gain in substantial ways as tractors, tires, pesticides and irrigation equipment have been placed in the lowest tax bracket. By cutting input costs, this measure strengthens agricultural productivity and supports rural prosperity. In Uttar Pradesh, where farming is the backbone of life for millions of families, the double engine government’s efforts to ensure social security and investment in irrigation find strong reinforcement through this national reform. Healthcare has been brought within reach of every citizen with GST entirely removed from life and health insurance and sharply reduced on medicines, oxygen and diagnostic kits. This makes treatment less costly and complements the vast expansion of medical colleges, hospitals and insurance coverage that Uttar Pradesh has witnessed since 2017. Industry and enterprise stand to benefit from a tax regime that is simpler, faster and more predictable. Automobiles are now taxed at 18% instead of 28%, stimulating demand and supporting employment in connected sectors. MSMEs will see faster refunds processing. Uttar Pradesh, with its 96 lakh MSME units employing 2 crore people, is uniquely placed to absorb these benefits through its network of expressways, airports and logistics corridors that connect entrepreneurs to markets. As Uttar Pradesh’s economy grows towards ₹36 lakh crore, the Next-Gen GST reforms will touch lives at every level in Uttar Pradesh, where farmers will see lower costs of cultivation, small traders and entrepreneurs will find compliance simpler, industries will gain competitiveness and households will feel real savings in their daily budgets. Every stakeholder in Uttar Pradesh’s economy will participate in and benefit immensely from the momentum of reform. #NextGenGST #DoubleEngineGovernment

The Sindh Revenue Board (SRB) has rolled out an online agricultural income tax return form, aiming to make tax compliance easier and more accessible for farmers and landowners across the province. https://lnkd.in/dYCBPdnS

Day 10/100:   GST Rate Cut: Benefits to the sector- The GST reforms, or GST 2.0 announced on 4th September, 2025, changed the rates of GST applicable on various different sectors, products and services. Shift to a two-slab regime from 4 slabs: 5%, 12%, 18% and 28%, which has now been reduced to only 5% and 18% removing the 12% and 28% slabs. A major overhaul has been seen in the Automobile Sector as well. Key changes and expected impacts have been highlighted hereunder:   1. Two-wheelers upto 350cc: Reduced from 28% to 18%: Impact: Increased accessibility to youth and lower-middle-class households. Benefit farmers, small traders, and daily wage earners as its their daily commute.   2. Small Cars (petrol engine cars of <1200 cc, diesel cars of <1500 cc and not exceeding 4 meters length): Reduced from 28% to 18%. Impact: Affordable segment will become cheaper, enabling first-time buyers increasing sales in smaller cities and towns.                3. Large cars: Increased from 28% to 40% (with benefit of removal of cess) Impact: The absence of cess will lower the effective tax on larger cars, making them relatively more affordable for aspirational buyers. Increased availability of ITC Credit 4. Auto Components: Reduced from 28% to 18%:   5. Tractors (<1800cc): Reduced from 12% to 5%. Tractors (>1800cc) Reduced from 28% to 18% and Tractor parts: Reduced from 18% to 5%: Impact: Push demand in both domestic and export segments. Ancillary MSMEs making engines, tyres, hydraulic pumps, and spare parts will benefit from higher production. Increased affordability of tractors will increase mechanisation in the agriculture sector especially staple crops like paddy, wheat, etc. 6. Commercial Goods Vehicles (Trucks, delivery-vans, etc): Reduced from 28% to 18%: Impact: Trucks carry 65%-70% of goods traffic. Reducing upfront capital cost of trucks will lower freight rates per tonne-km. The GST reduction does not include ‘Refrigerated motor vehicles’ (they have a separate classification). 7. Buses (seating capacity of 10+ persons): Reduced from 28% to 18% Impact: This will spur demand from fleet operators, corporates, schools, tour operators, and state transport undertakings. Affordable ticket fares for passengers (especially in semi-urban/rural routes).

Ram's 😎 Scoop Rich people in India are using farmhouses and agricultural land to avoid taxes by leveraging specific provisions of the Indian Income Tax Act. Agricultural income is tax-free in India, so they show revenue from crops on their agricultural land to claim no income tax. Additionally, capital gains from selling agricultural land can be exempted from tax if the proceeds are reinvested in purchasing agricultural land within two years, under Section 54B of the Income Tax Act. This section allows an exemption on capital gains arising from transfer of agricultural land, provided the reinvestment conditions are met. Ram's 😎 Scoop Other tax advantages include lower Goods and Services Tax (GST) on agricultural produce (0-5%) and reduced stamp duty rates on agricultural land in many states. Some rich individuals even claim their cash earnings as farm produce revenue, turning black money white legally. They also use entities like trusts or LLPs to hold these properties, which further shields assets from creditors. Ram's 😎 Scoop Overall, farmhouses serve as legal tax shelters where the wealthy benefit from zero income tax on farming income, exemptions on capital gains by reinvestment of land sale proceeds, low GST on farm produce, and lower stamp duty, enabling them to significantly reduce their tax liabilities compared to salaried middle-class tax payers.

As the New Gen GST Reforms roll out from 22nd September, marking a significant shift in India’s indirect tax landscape, a burning question remains -Will the GST rate cut truly reach the ultimate consumers? 💡 What’s changing (in brief): India moves to a simplified two-rate GST structure of 5% and 18%, with a 40% “sin/luxury” band (mainly via cess) from 22 Sept 2025. FMCG, durables and several services shift to lower slabs; tobacco products remain unchanged. Further, The government lowered taxes on fertilizers and tractors to help lower costs for farmers, to protect them following a breakdown in India-U.S. trade talks. 💸 Will prices really drop? Many fear that companies may adjust their base prices to offset the reduced tax outflow, effectively neutralizing the intended relief. This practice not only undermines the spirit of the reform but also raises serious questions about fair market conduct. 🔎 What’s being done: ▪️ To ensure genuine relief, the CBIC has instructed field formations to closely monitor 54 essential goods, mandating monthly MRP reports to track compliance. ▪️ The Ministry of Commerce has asked retail chains to clearly highlight GST-driven discounts, making them visible on shelves and promotions. Making a space even for special audits under GST wherever malpractices would be spotted. ▪️ To ensure rate reductions are passed on, the government is considering reintroducing anti-profiteering provisions of the CGST Act for a limited duration. 📊 Economic Stakes & Credibility : Revenue loss is estimated to be ₹ 48,000 crore in the short term but manageable against the ever increasing average monthly collections. As per CRISIL, over 11 of top 30 consumption items in both urban and rural baskets are now under lower slabs, Consumers to save ₹59/month (rural) & ₹88/month (urban), with ~28% of rural & 26% of urban spend now under lower slabs. But amidst all the projections & hopes, credibility is on the line because if benefits fail to reach consumers, the backlash can erode public trust in the reform. 📌Responsibilities: · Businesses: Recompute base prices, update invoices, ensure pass-through to tap in an opportunity to build goodwill. · Consumers: Verify MRPs/invoices; raise complaints if benefits not visible at appropriate forum. · Tax professionals: Document pass-through by cost & profit sheets & guide transparent pricing ensuring seamless benefit pass on to consumer as well as government. 🔺 With the U.S. tariffs, growing domestic demand becomes a strategic shield. The GST cuts serve as a buffer, igniting domestic consumption, reducing vulnerability to the global west trade shocks. 📍 Bottom line: GST 2.0 is not just about lower rates - it’s about trust, transparency, and responsibility. If businesses, professionals, and consumers all play their part, these reforms can genuinely deliver on their promise, making life easier for households while strengthening India’s growth engine. #GST #GSTReforms #taxation #economy

Why are businesses fretting over GST rate cuts? Several industry representatives from pharmaceuticals, textiles, insurance, clean energy, and farm equipment have raised concerns with the government over cashflow challenges caused by recently announced GST rate cuts effective from 22 September 2025. Although the reductions aim to stimulate demand and industrial growth, they have highlighted existing flaws in the GST system, particularly relating to the input tax credit mechanism. GST is designed as a consumption tax applied only on the value added at each stage of the supply chain, with businesses receiving credits for taxes paid on raw materials and services to offset their output tax liability. However, certain products like fertilizers have a lower final GST rate despite raw materials being taxed at higher rates, creating a duty inversion where input tax paid exceeds output tax owed. Businesses must claim refunds for excess input tax credits, but delays or denials in these refunds create cashflow issues and prompt price increases passed on to consumers. The inverted duty structure results in indirect tax cascading, reducing competitiveness and deterring investment, which conflicts with government priorities of promoting import substitution and self-reliance. Although the GST Council has addressed some duty inversion cases, many persist. Refund claims related to duty inversion undergo strict scrutiny, unlike automated refunds for exporters. Input tax credit fraud has also been a significant issue, accounting for about one fourth of the ₹7 trillion GST evasion detected over five years ending FY25, according to the finance ministry. Industry groups including textile, insurance, tractor, and fertilizer sectors have requested solutions to problems arising from recent rate cuts. Tractor manufacturers, for instance, report difficulty recovering approximately ₹800-900 crore of input tax paid on raw materials as GST rates on tractors decline. The council has reduced rates on tractors and some components like tires to mitigate duty inversion. Health and life insurance services becoming exempt complicate input tax refunds, though non-exempt insurance services remain eligible. Since raw materials and services serve multiple industries, tax rate revisions require careful calibration to avoid unintended consequences. Tax authorities thus consider major downstream consumers and prevailing final tax rates before making changes. Additionally, socioeconomic and political factors often limit purely economic rationality in setting final GST rates to minimize duty inversion. #AsiaRisk #Regulation #India https://lnkd.in/g64RnDrX

GST Reforms Take Effect: Boost for MSMEs, Households, and Key Sectors September 22 marks the implementation of the latest round of reforms in India’s GST regime, which were first announced earlier this month. Comprising a simplified two-slab structure of 5% and 18%, the reforms aim to ease compliance and support growth by mitigating the tax burden, with key beneficiaries including sectors such as healthcare and agriculture, as well as households and MSMEs, who will enjoy the benefits of the reforms. According to government reports, multiple industries have already pledged to provide direct benefits to consumers due to the rate cuts. A major car manufacturer has announced reductions on specific models and other passenger vehicles, followed by the agreement of several public sector insurance companies to share the benefits with customers. Moreover, to facilitate the transition, the authorities will issue periodic clarifications. Bridge Counsels Team #GSTReforms #MSMEs #TaxUpdates #IndiaEconomy #Healthcare #Agriculture #ConsumerBenefits #TaxSimplification #EconomicGrowth #GSTIndia #FinanceNews #BusinessUpdate #BridgeCounsels https://lnkd.in/giAUbU_J

India's Goods and Services Tax (GST) regime is undergoing significant reforms, dubbed GST 2.0, aimed at simplifying the tax structure, boosting economic growth, and enhancing ease of doing business. These reforms were approved by the GST Council on September 3, 2025, and are set to take effect from September 22, 2025. Key Highlights of GST 2.0 Reforms Simplified Tax Slabs:The GST Council has reduced the tax slabs from four (5%, 12%, 18%, and 28%) to primarily two main rates: 5% for essential goods and services, and 18% for most other items. A special 40% slab applies to luxury and sin goods. Rate Rationalization: About 99% of items previously taxed at 12% will shift to the 5% slab, while 90% of items in the 28% slab will move to the 18% category. Essential Items Get Cheaper: Goods like daily essentials, packaged food, clothing, medicines, and medical equipment are expected to become more affordable. Specific Sector Benefits: Automobiles: Small cars and motorcycles up to 350cc will attract 18% GST, down from 28%. Insurance:Individual life and health insurance policies are now exempt from GST. Construction: Cement and other building materials see GST reduced from 28% to 18%, potentially boosting affordable housing. Agriculture: Key fertilizer inputs like sulphuric acid and ammonia now attract 5% GST, down from 18%. Items Affected by GST Changes Cheaper Items Consumer Durables: Air conditioners, TVs, refrigerators, and washing machines now taxed at 18% instead of 28%. Small Vehicles: Petrol cars under 1200cc and diesel cars under 1500cc see reduced GST. Hotel Rooms: Tariffs up to ₹7,500/day attract 5% GST without input tax credit. Economy Class Flights:GST reduced to 5%. Costlier Items Luxury and Sin Goods: Attract a new 40% GST rate, including high-end cars, tobacco products, caffeinated and aerated drinks. Tobacco Products: Will continue with 28% GST plus compensation cess until pending loans are repaid, then shift to 40% GST. Objectives and Expected Impact Ease of Doing Business: Simplified registration, pre-filled returns, and faster refunds aim to boost MSMEs and startups. Economic Growth: Lower taxes on essentials and aspirational goods are expected to increase consumption and support industries like textiles, agriculture, and healthcare. Revenue Implications: Estimated annual revenue impact of ₹48,000 crore, with hopes of offsetting through higher consumption and compliance. Implementation and Governance GST Council: The council, comprising Union and state finance ministers, drives GST policy decisions. Effective Date: Most changes kick in from September 22, 2025, with some exceptions like tobacco products. GST Appellate Tribunal (GSTAT): Operationalization aims to resolve tax disputes more efficiently Overall, GST 2.0 represents a significant overhaul aiming to make India's indirect tax system simpler, more predictable, and supportive of economic growth, aligning with global best practices in taxation

🚫 GST Exemptions – What’s NOT Taxable Under GST? 🧾 Not all supplies attract GST! Here's a quick rundown of commonly exempt goods & services under the GST Act 👇 1️⃣ What is an Exempt Supply? As per Sec 2(47), it includes: – Supplies attracting NIL rate – Wholly exempt via notifications – Non-taxable supplies (like petrol, alcohol) ✅ No GST ✅ No Input Tax Credit (ITC) 2️⃣ Common Exempt Services: 🩺 Healthcare by hospitals & doctors 📚 Education by approved schools & colleges 💼 Services by RBI, Govt (non-commercial) 🚌 Public transport by non-AC buses 🙏 Services by religious trusts (basic) 3️⃣ Common Exempt Goods: 🥛 Fresh milk, curd, eggs 🌾 Unbranded grains, pulses, vegetables 📚 Printed books 🚿 Sanitary napkins 🛢️ Khadi products (by KVIC-approved outlets) 4️⃣ Special Exemptions for Charitable Trusts: ✔️ Conducting yoga, spiritual, or religious activities ✔️ Fee ≤ ₹1000/day for hostel accommodation ✔️ Free distribution of food/medicine/education 🔸 Must be registered u/s 12AA/12AB of Income Tax Act 5️⃣ Transportation Services Exemptions: 🚢 Goods transport by rail/vessel (non-petroleum goods) 🚚 GTA (under reverse charge) – exempt for agricultural produce, milk, salt ✈️ Air travel in economy to NE states & islands 6️⃣ Services Exempt When Below Threshold: 💰 No GST registration required if aggregate turnover: – < ₹40L for goods – < ₹20L for services (₹10L in special category states) 7️⃣ Important to Remember: ❌ Exempt supplies = No ITC 📄 Report them in GSTR-1 & 3B 📌 Maintain books to show exempt income separately 🔁 Retweet this thread to help small businesses & NGOs stay GST-compliant! #GSTReturns #ExemptedGoods #GSTLaw #CAIndia #FinanceSimplified #GSTIndia #GSTExemptions #IndirectTax #CAcommunity #SmallBusiness

🚫 GST Exemptions – What’s NOT Taxable Under GST? 🧾 Not all supplies attract GST! Here's a quick rundown of commonly exempt goods & services under the GST Act 👇 1️⃣ What is an Exempt Supply? As per Sec 2(47), it includes: – Supplies attracting NIL rate – Wholly exempt via notifications – Non-taxable supplies (like petrol, alcohol) ✅ No GST ✅ No Input Tax Credit (ITC) 2️⃣ Common Exempt Services: 🩺 Healthcare by hospitals & doctors 📚 Education by approved schools & colleges 💼 Services by RBI, Govt (non-commercial) 🚌 Public transport by non-AC buses 🙏 Services by religious trusts (basic) 3️⃣ Common Exempt Goods: 🥛 Fresh milk, curd, eggs 🌾 Unbranded grains, pulses, vegetables 📚 Printed books 🚿 Sanitary napkins 🛢️ Khadi products (by KVIC-approved outlets) 4️⃣ Special Exemptions for Charitable Trusts: ✔️ Conducting yoga, spiritual, or religious activities ✔️ Fee ≤ ₹1000/day for hostel accommodation ✔️ Free distribution of food/medicine/education 🔸 Must be registered u/s 12AA/12AB of Income Tax Act 5️⃣ Transportation Services Exemptions: 🚢 Goods transport by rail/vessel (non-petroleum goods) 🚚 GTA (under reverse charge) – exempt for agricultural produce, milk, salt ✈️ Air travel in economy to NE states & islands 6️⃣ Services Exempt When Below Threshold: 💰 No GST registration required if aggregate turnover: – < ₹40L for goods – < ₹20L for services (₹10L in special category states) 7️⃣ Important to Remember: ❌ Exempt supplies = No ITC 📄 Report them in GSTR-1 & 3B 📌 Maintain books to show exempt income separately 🔁 Retweet this thread to help small businesses & NGOs stay GST-compliant! #GSTReturns #ExemptedGoods #GSTLaw #CAIndia #FinanceSimplified #GSTIndia #GSTExemptions #IndirectTax #CAcommunity #SmallBusiness