Important Update: Major GST Slab Rationalisation — Action Required from all Business Partners

Date: 19^TH September 2025

To all our Partners and Clients,

You may already have heard—on 3rd September 2025, the GST Council approved sweeping reforms to the Goods & Services Tax (GST) slab structure in India. These changes are to be implemented from 22nd September 2025.

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What is changing

• The 12% and 28% GST slabs are being abolished.
• Goods and services will now largely fall under 5% or 18% GST slabs.
• A new 40% GST slab will apply to certain luxury and sin goods (e.g. high-end cars, tobacco products, premium motorcycles, aerated beverages etc.)
• Some goods / services will be exempt (0% GST / Nil rate), especially everyday essentials, life & health insurance, and some food items.

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Effective Date

The revised GST slabs come into effect from 22nd September 2025. Any invoices or orders issued after that date must comply with the new rate structure.

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What Business Partners Need to Do

To ensure compliance, and to avoid invoicing problems or rejection of orders, please take the following actions immediately:

1. Consult with your Supply Chain / Purchasing / Tax departments
   Review your current ARC orders, procurement contracts, price lists and ensure that GST slabs are updated.
2. Update your invoicing systems
   All invoices issued from 22nd September 2025 should use the new applicable GST slabs (5%, 18%, 40%, or 0% where applicable). Any invoice with the old 12% or 28% slabs after that date may be invalid or rejected.
3. Train your staff
   Sales, accounting, invoicing and billing teams should be informed of the changes—especially about classification of goods/services, how to apply the correct HSN codes, and verifying that GST rate applied is correct.
4. Review contracts / pricing with customers
   Some of your product prices to clients may change (lower or higher), depending on whether the old rate was higher or lower. Communicate in advance if there are changes.
5. Audit current inventory
   Products or goods stocked under old tax rates but invoiced after 22 September will need invoices reflecting the new slab. Ensure stock and invoices align.
6. Monitor government / official notifications
   Sometimes notifications include detailed product‐wise HSN code lists, sub‐categories, definitions of luxury/sin goods etc. Keep track of Finance Ministry / GST Council / CBIC circulars for complete clarity.

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Consequences of Non-Compliance

• Invoices using 12% or 28% GST slabs after 22nd September 2025 may be rejected or not accepted by us / clients.
• Incorrect GST charging could lead to penalties, delay in input tax credits, or difficulties in compliance audits.
• Discrepancies in pricing or taxation may damage trust with customers or partners.

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Satya IT Solution’s Position & Next Steps

At Satya IT Solution:

We will be updating our systems, price lists, and internal documents to conform with the new GST slabs.

We will not accept invoices dated after 22nd September 2025 that still carry the 12% or 28% GST slab.

We request all our partners to revise and re‐submit any ARC (Annual Rate Contracts) or orders where these old slabs are used.