India's government has announced sweeping cuts to GST rates, covering 99% of goods and services, aiming to make daily essentials cheaper and boost consumer spending. The new tax structure takes effect from September 22. But industry leaders are raising red flags. Their concern? The input tax credit system may not cover increased costs, especially for zero-rated items like paneer and notebooks. Without proper refunds on raw materials, manufacturers could lose out—and prices might not fall. As officials scramble to address this, India faces the true test of reform: implementation. Will the GST cuts actually help consumers or hurt businesses?
