The GST Council is set to meet on September 3–4, 2025, and the details of a major GST overhaul are emerging—aiming to simplify tax slabs and provide festive-season relief ahead of Diwali. What’s on the Table? Simplified Two-Slab Structure (5% & 18%) Proposals include collapsing 12% and 28% brackets into just 5% and 18%, plus a 40% rate reserved for sin and luxury goods. Food, FMCG & Textiles Goods like butter, ghee, dry nuts, condensed milk, jam, cornflakes, biscuits, ice cream, soap, toothpaste, shampoos, and stationery are expected to drop to 5% GST. Retail & Apparel Ready-made apparel and footwear priced under ₹2,500 may now attract 5% GST, up from ₹1,000 previously—boosting mass-market retailers. Cement & Auto Cement rates could fall to 18% (from 28%)—a win for construction sectors. Small cars, 2-wheelers, and select appliances may move to 18% GST. Insurance & Services Individual health and life insurance policies may become GST-free or zero-rated, a relief aimed at improving penetration. Other services like salons and mass consumption services may shift to 5% GST. Stimulus for Consumption These cuts could stimulate demand across FMCG, consumer durables, apparel, cement, and small autos—extending a potential boost of ~0.6–0.8% of GDP. Sectoral Bright Spots Mass-market brands (FMCG, textile & stationery firms), value retailers like Trent, cement makers, entry-level auto and consumer electronics companies stand to gain.

TRENT

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