Overview

• New rates consolidate the structure to 5% for commonly used goods and 18% for most others, with a 40% band for select sin and luxury items alongside targeted exemptions.
• Finance Minister Nirmala Sitharaman says the rejig will inject about Rs 2 lakh crore into the economy, with the government estimating a net revenue hit of roughly Rs 48,000 crore to be offset by stronger consumption.
• The central notification supersedes the 2017 CGST rate order, and states now need to issue corresponding SGST notifications for the pan‑India rollout.
• Authorities have urged full price pass‑through; FMCG companies and automakers have begun announcing cuts while CBIC and field officers monitor anti‑profiteering and issue implementation FAQs.
• Fitment changes shift 99% of items from the 12% slab to 5% and about 90% from 28% to 18%, with the go‑live timed for the festive season starting on 22 September.