Overview

• India’s new GST structure retains two core rates of 5% and 18% with a 40% band for tobacco and ultra‑luxury items, taking effect September 22, with tobacco exceptions running on 28% plus cess until December 31.
• Luxury and mass‑market manufacturers announced reductions, including Mercedes, BMW and Audi with cuts up to about Rs 11 lakh, Tata with savings up to Rs 1.55 lakh, Honda up to Rs 95,500, and JLR passing benefits from Sept. 9; Bajaj and Yamaha will lower two‑wheeler prices from the rollout date.
• Dealers holding inventory billed under the old cess regime warn of losses estimated around Rs 2,500 crore and have asked the Finance Minister for a transitional credit or refund pathway as some outlets pause new billing until existing stock clears.
• CBIC chief Sanjay Kumar Agarwal urged tax officers to handhold trade and MSMEs through the shift and highlighted process changes, including faster refunds and a simplified registration scheme starting November 1 for low‑risk applicants.
• The Finance Minister has expressed confidence that a consumption boost will offset an estimated revenue shortfall of roughly Rs 48,000 crore from the rate cuts, as states and trade bodies press for safeguards and clarity.