GST Council’s New Two-Slab Tax Structure
On September 4, 2025, the GST Council announced a major reform, replacing India’s existing four-tier tax structure with a simplified two-slab system of 5% and 18%. This move, aimed at boosting consumption and simplifying compliance, will be effective from September 22, 2025. The new structure eliminates the 12% and 28% slabs. An additional 40% ‘demerit rate’ has been introduced for luxury and sin goods. The reform also includes significant rate reductions on a wide range of everyday consumer items, such as personal care products like shampoo and toothpaste, which will move from the 18% slab to 5%. Life-saving drugs, health insurance policies, and essential food items like paneer will be exempt from GST entirely. The government projects a net revenue implication but anticipates it will be offset by increased economic activity and a consumption boost.
- Reference: “India delivers tax bonanza ‘for common man’, new GST rates from 22 September” – Hindustan Times, September 4, 2025.
Launch of Bihar’s ‘Jeevika Nidhi’
Prime Minister Narendra Modi virtually inaugurated the ‘Bihar Rajya Jeevika Nidhi Saakh Sahkari Sangh Limited’ on September 4, 2025. This cooperative initiative is designed to provide affordable and accessible credit to the rural women entrepreneurs of Bihar who are part of the ‘Jeevika’ self-help groups. The move is intended to reduce their dependency on high-interest loans from microfinance institutions. PM Modi transferred ₹105 crore into the institution’s bank account to kickstart the fund. The entire system will operate on a digital platform, ensuring direct and transparent fund transfers. The launch is a part of the government’s broader strategy to empower women and accelerate the growth of community-led enterprises in rural areas.
- Reference: “PM Modi Virtually Launches Bihar Rajya Jeevika Nidhi Saakh Sahkari Sangh Limited” – News On Air, September 2, 2025.
Postponement of ICAI CA Exams
The Institute of Chartered Accountants of India (ICAI) announced the postponement of its CA Final and Intermediate exams scheduled for September 3 and 4, 2025, in certain regions. The decision was made due to heavy rainfall and a severe flood situation in select cities of Punjab and Jammu. The affected examination centers include Amritsar, Bathinda, Jalandhar, and Jammu City, among others. The ICAI clarified that the exams in other centers across India and overseas will proceed as per the original schedule. The revised dates for the postponed exams will be announced soon, and students have been advised to stay updated via the official ICAI website.
- Reference: “ICAI CA Final, Intermediate Exams Postponed in Select Cities of Punjab and Jammu; Revised Dates Awaited” – The Indian Express, September 3, 2025.
Maharashtra Approves Longer Private Sector Work Hours
The Maharashtra cabinet approved amendments to the Factories Act, 1948 and the Maharashtra Shops and Establishments Act, 2017, allowing for an increase in daily working hours for private sector employees. The new rules, approved on September 4, 2025, raise the maximum daily working hours from 9 to 10 in private establishments. This change brings Maharashtra in line with other states like Karnataka and Telangana. The move is aimed at promoting the ‘ease of doing business’, attracting new investments, and generating employment. The amendments also increase the legal overtime cap and require written consent from workers for extended shifts, while ensuring double pay for overtime hours.
- Reference: “Daily working hours allowed to go up from 9 to 10 hours in Maharashtra’s private sector as State cabinet plans to amend laws” – The Hindu, September 4, 2025.
UPI Transactions Cross 20 Billion Mark
In a significant milestone for India’s digital economy, monthly transactions through the Unified Payments Interface (UPI) crossed the 20 billion mark for the first time in August 2025. According to data released on September 4, 2025, by the National Payments Corporation of India (NPCI), the total transaction volume for the month stood at 20.01 billion, reflecting a 34% year-on-year increase. The total transaction value reached ₹24.85 lakh crore. This achievement underscores the widespread adoption of digital payments in India, with UPI now accounting for a staggering 85% of all digital transactions in the country. The data indicates that UPI is becoming a daily financial tool for millions, extending its reach from urban centers to rural areas.
- Reference: “Monthly UPI transactions cross 20 billion for first time in August” – The Economic Times, September 1, 2025.
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