Digest for 18 September, 2025
Government Notifies Sweeping GST Reforms, New Rates Effective September 22
The central government has notified new Goods and Services Tax (GST) rates, marking the largest overhaul since its 2017 launch. The reform streamlines the system into two main slabs of 5% and 18%, with a 40% rate on luxury and sin goods. Items previously taxed at 12% and 28% will largely move to the 5% and 18% brackets, respectively. The changes, effective September 22, are expected to reduce the tax burden on households and inject ₹2 lakh crore into the economy.
Saudi Arabia and Pakistan Sign Mutual Defence Pact, India to Study Implications
Saudi Arabia and Pakistan have signed a Strategic Mutual Defence Agreement, stipulating that any aggression against one nation will be considered an attack on both. The pact was signed in Riyadh during Pakistani Prime Minister Shehbaz Sharif's visit. It aims to formalize and strengthen long-standing defence cooperation between the two countries. India's Ministry of External Affairs stated it is aware of the development and will study its implications for national security and regional stability, remaining committed to protecting India's interests.
Rahul Gandhi Accuses Election Commission of Shielding 'Vote Theft'
Leader of Opposition Rahul Gandhi accused Chief Election Commissioner Gyanesh Kumar of protecting those who are “destroying” democracy by failing to act on alleged voter list manipulation. Citing investigations in Karnataka's Aland and Maharashtra's Rajura constituencies, Gandhi claimed thousands of votes were systematically deleted or added using automated software. He stated the Karnataka CID has sent 18 letters to the EC seeking IP addresses and other data, but has received no response, alleging this inaction amounts to defending electoral fraud.
Bangladesh Election Commission Bars Ousted PM Sheikh Hasina From Voting
Bangladesh's Election Commission has effectively barred deposed Prime Minister Sheikh Hasina and her family from voting in the upcoming February general elections by "locking" their national identity cards. The move follows the ousting of Hasina's government in August 2024 after a student-led uprising. The interim government, led by Nobel laureate Muhammad Yunus, has suspended her Awami League party, and Hasina is currently being tried in absentia on charges of crimes against humanity, with prosecutors seeking capital punishment.
Indian Stock Markets Surge After US Federal Reserve Cuts Interest Rates
Indian benchmark indices Sensex and Nifty surged in early trade, propelled by strong buying in IT stocks. The rally followed the U.S. Federal Reserve's decision to cut its key interest rate by 25 basis points, its first reduction of the year. The Fed also signalled the possibility of two additional cuts in 2025, which boosted global investor sentiment. The move is expected to attract more foreign capital to India, potentially strengthening the rupee and further benefiting the stock market.