Lok Sabha Question No. 2506 (UNSTARRED), answered on 2025-12-15
Subject: Impact of GST 2.0 on Businesses and MSMEs in Dahod
Ministry: FINANCE
Asked by: Shri Jaswantsinh Sumanbhai Bhabhor

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE LOK SABHA UNSTARRED QUESTION NO. 2506

## TO BE ANSWERED ON MONDAY, DECEMBER 15, 2025/AGRAHAYANA 24, 1947 (SAKA)

## IMPACT OF GST 2.0 ON BUSINESSES AND MSMES IN DAHOD

## 2506. SHRI JASWANTSINH SUMANBHAI BHABHOR:

Will the Minister of FINANCE be pleased to state:

- (a) the benefits received by the small traders, artisans and agricultural  produce  sellers  of  Dahod  Lok  Sabha  constituency through simplified GST;
- (b)  the  impact of increasing e-commerce platforms on competition and consumption in Dahod Lok Sabha constituency; and
- (c) whether the GST 2.0 will attract investment in Dahod Lok Sabha
- constituency?

## MINISTER OF STATE IN THE MINISTRY OF FINANCE

## ANSWER (SHRI PANKAJ CHAUDHARY)

(a),  (b)  and  (c)  Based  on  the  recommendations  of  the  56 th   GST Council meeting held on 03.09.2025, a citizen friendly 'Simple Tax, a 2 rate structure with a Standard Rate of 18% and a Merit Rate of 5% has been introduced ; a special de-merit rate of 40% for a select few goods and services. The GST reforms notified on the recommendations of the 56 th GST Council meeting held on 03.09.2025 are uniform across the country. Small traders, artisans, and agricultural produce sellers in Dahod will also benefit significantly from rate rationalization and the process reforms.

There has been reduction of GST from 18% or 12% to 5% on a host of common man items, sold by small traders, such as, hair oil, toilet soap  bars,  shampoos,  toothbrushes,  toothpaste,  among  others. Also, there has been a reduction of GST from 12% or 18% to 5% on almost  all  of  the  food  items  such  as  packaged  namkeens,  Bhujia, Sauces,  Pasta,  Instant  Noodles,  Chocolates,  Coffee,  Preserved

Meat, Cornflakes, Butter, Ghee, etc. Further, reduction of GST from 12%  to  5%  on  agricultural  goods,  such  as  tractors,  agricultural, horticultural or forestry machinery for soil preparation or cultivation, harvesting or threshing machinery, including straw or fodder balers, grass  or  hay  mowers,  composting  machines  etc.  has  also  been carried out. Artisan will also benefit from a rate reduction from 12% to  5%  in  terms  of  handicraft  goods  such  as  furniture  made  of bamboo, ratan, and cane, artwares of iron, stone, aluminium, carved wood products, etc.

In  addition  to  the  above,  in  order  to  simplify  the  registration process,  an  optional  simplified  GST  registration  scheme  has  been introduced  wherein  registration  shall  be  granted  on  an  automated basis  within  three  working  days  from  the  date  of  submission  of application in case of low risk applicants and applicants who based on their own assessment, determine that their output tax liability on supplies  to  registered  persons  will  not  exceed  Rs.  2.5  lakh  per month w.e.f. 1 st  November 2025.

Further, to ensure seamless credit flow and prevent tax cascading, the GST Council in its 56th Council meeting recommended amending the provisions of the CGST/SGST Acts to provide for the provisional refund of 90% of the claimed amount in cases arising out of  an  inverted  duty  structure,  on  similar  lines  as  is  presently available  for  refund  in  respect  of  zero-rated  supply  refund  claims. Pending amendments in the CGST/SGST Acts, the Central Board of Indirect  Taxes  and  Customs  has  issued  instructions  to  its  field formations to grant refunds on a provisional basis equivalent to 90% of  refund  claimed,  arising  out  of  Inverted  Structure  based  on  the identification and evaluation of risk by the system w.e.f. 1st October 2025.

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