Overview

• Rolled out on September 22, the reform consolidates most goods and services into 5% and 18% slabs with a 40% demerit rate for luxury and sin items, and expands zero-tax coverage for staples.
• An NDTV Profit spot check of a Mumbai household shows grocery bills down about 10% as several packaged foods and personal-care items reflect lower GST, though pass-through varies by brand.
• Union Bank of India calls the move a booster for consumption, flagging relief across FMCG, textiles, autos, electronics, construction, MSMEs, healthcare and insurance.
• Auto GST cuts from 28% to 18% on two-wheelers, small cars, buses, ambulances and parts are translating into lower prices—compact cars by up to Rs 2.5 lakh and two-wheelers by roughly Rs 8,000–15,000—with demand gains of 12–15% expected.
• Healthcare costs are set to ease with GST removed on 33 lifesaving drugs, health and life insurance exempted, and medical devices and diagnostic kits reduced to 5%, even as analysts caution about a revenue hit near Rs 48,000 crore.