Reduced GST Rates on 375 Items to Take Effect from Sept 22: CBIC Chief Urges Industry Outreach

In his weekly newsletter to tax officials, Agarwal said lower taxes on essential commodities for the common man will reduce household expenditure, while affordable inputs for farmers, artisans and manufacturers will boost production, employment, and exports. He said these reforms are not just about cutting interest rates - they represent a paradigm shift towards a more equitable and citizen-centric tax structure.

Aggarwal wrote in the letter, "With these transformational reforms coming into effect, the need of the hour is to help the trade and industry navigate this transition smoothly. Active outreach and effective interaction will be key to ensure that taxpayers clearly understand the revised tax rates and compliance simplification."

He said greater awareness will not only reduce confusion but will also help businesses, especially small traders and MSMEs, seamlessly adopt the reforms and take full advantage of them. Aggarwal said procedural reforms will ensure ease of business for all, especially small traders and businesses.

The 56th meeting of the GST Council also decided to launch an easy GST registration scheme for small and low-risk businesses from November 1. Under the Optional Simplified GST Registration Scheme, in case of low risk applicants and applicants who, on their own assessment, determine that their output tax liability on supplies to registered persons will not exceed Rs 2.5 lakh per month (inclusive of CGST, SGST/UTGST and IGST), registration will be granted on an automatic basis within three working days from the date of submission of the application. The scheme will also have an option to voluntarily join and exit the scheme.