Digest for 04 September, 2025
GST Council Overhauls Tax Structure, Adopts Two-Rate System
The GST Council has approved a historic revamp of India's indirect tax system, effective September 22. The new structure primarily features two slabs, 5% and 18%, replacing the 12% and 28% rates for most goods, while introducing a new 40% slab for sin and luxury items. The changes are expected to make numerous daily essentials, food products, textiles, and fertilisers cheaper, aiming to boost consumption and economic growth. Indian stock markets rallied in response to the announcement.
US President Trump Rules Out Lifting Tariffs, Calls India's Trade Practices "One-Sided"
US President Donald Trump has stated he will not roll back the 50% tariffs on Indian goods, describing the bilateral trade relationship as historically "one-sided". Citing high Indian tariffs on American products like Harley-Davidson motorcycles, Trump claimed India "kills us with tariffs" and dismissed a reported Indian offer of a "no tariffs" deal as "too late." The comments signal continued trade friction between the two strategic partners despite ongoing negotiations for a new trade agreement.
Over One Billion People Lived with Mental Health Conditions in 2021, WHO Reports
The World Health Organisation has reported that over a billion people globally, or about one in seven, were living with mental health conditions in 2021. Anxiety and depressive disorders were the most prevalent. The 'World Mental Health Today' report underscores the immense human and economic toll, with productivity losses from depression and anxiety estimated at $1 trillion annually. The WHO highlighted significant gaps in care, with governments globally spending only about 2% of health budgets on mental health.
Israel Rejects Hamas's Latest Comprehensive Ceasefire Proposal for Gaza
Israel has rejected a new ceasefire proposal from Hamas aimed at ending the war in Gaza. The Hamas offer included the release of Israeli hostages for Palestinian prisoners, a permanent ceasefire, Israeli withdrawal from Gaza, and the start of reconstruction. Israeli Prime Minister Benjamin Netanyahu's office dismissed the offer, stating the war would only end with full Israeli security control over a demilitarised Gaza. The Israeli Defence Minister added that the army is continuing preparations for a major attack on Gaza City.
Iran Increased Stockpile of Near Weapons-Grade Uranium, UN Watchdog Reports
The International Atomic Energy Agency (IAEA) reported that Iran increased its stockpile of uranium enriched to 60% purity—a short technical step from weapons-grade—just before an Israeli military attack in June. According to a confidential report, Iran's stockpile of this highly enriched uranium grew by over 32 kg to 440.9 kg. The UN nuclear watchdog also expressed "serious concern" that its inspectors have been unable to verify Iran's stockpile for over two and a half months following the conflict.