Tarun Karthick
Sri Vijaya Puram, 06 October 2025
Following the rollout of the next-generation GST reforms across India on September 22, 2025, the GST Department has initiated a special enforcement drive in the Andaman & Nicobar Islands to ensure compliance with the revised tax structure and to safeguard consumer interests.
The recent reforms have simplified the indirect tax framework by reducing GST slabs from four to two — 5% and 18% — along with the introduction of a special 40% demerit rate for select items. The move aims to stimulate economic growth and provide relief to citizens.
However, according to officials, some businesses in the Islands have not been adhering to the updated GST norms and are allegedly failing to pass on the benefits of the reduced tax rates to consumers. In response, the GST Department has begun taking strict action, penalising violators under the relevant provisions of GST law.
“All business establishments must strictly follow the new GST rules and ensure that the benefits of tax reduction reach the consumers,” the department stated in an advisory. Non-compliance, it warned, would attract penalties as prescribed under GST regulations.
Residents and business owners who wish to report instances of non-compliance or seek clarification regarding GST rates and their implementation in the Union Territory may do so via WhatsApp at 9595359698.
