GST on Apparel and Footwear Up to ₹2,500 Cut to 5%
The GST Council approved reducing GST on apparel and footwear priced up to ₹2,500 to 5%, expanding the lower rate bracket from the previous threshold of ₹1,000—aimed at making everyday wear more affordable and boosting retail demand.The Times of IndiaThe Economic Times
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‘Non-Risky’ Businesses to Get GST Registration in 3 Days; Refunds in 7 Days
Approval was also given for expedited GST registration—reduced to three days for businesses deemed “non-risky”—alongside a seven-day refund window for key sectors like textiles, chemicals, fertilisers, and pharmaceuticals.The Economic Times
Section 1: GST Rate Cut on Apparel and Footwear
In a significant relief move, the GST Council approved lowering the GST rate on apparel and footwear priced up to ₹2,500 to 5%, marking a substantial expansion of the lower tax slab. Previously, this rate applied only to items priced up to ₹1,000. The change aims to reduce the consumer burden and drive demand in the retail and manufacturing sectors.The Times of IndiaRediff
This latest threshold update is part of a broader rationalisation plan to eliminate the 12% and 28% slabs, reallocating most goods into the 5% and 18% tax categories, reinforcing the push towards GST simplification.RediffDevdiscourse
Section 2: Faster Registration for Businesses & Accelerated Refunds
To enhance ease of doing business, the GST Council approved a three-day registration timeframe for businesses considered “non-risky”—a significant reduction from the longer timelines previously observed.The Economic Times
Moreover, a seven-day refund window has been approved for industries such as textiles, chemicals, fertilisers, and pharmaceuticals—seeking to improve liquidity for these vital sectors. Authorities are also working on introducing pre-filled return forms to simplify the filing process further.The Economic Times
Section 3: Broader Implications & Strategic Impact
Consumer Relief & Economic Boost: By cutting GST on affordable apparel and footwear, the Council aims to reduce retail prices, which could spur sales volumes and support both shoppers and manufacturers.
Support for Small Businesses: Fast-tracked GST registration and refunds provide vital relief to small and medium enterprises by reducing compliance bottlenecks and cash-flow delays.
Simplified Tax Regime: These measures—alongside move toward two slab structures—further the objective of GST 2.0, positioning it as more transparent and business-friendly.
Sectoral Boost: Industries like textiles and pharmaceuticals are expected to benefit immediately from faster refunds, aiding production cycles and operational finances.
