Overview

• Finance Minister Nirmala Sitharaman said all insurers have passed the full 18% GST reduction to policyholders, with early price drops reported in pharmaceuticals, ration items and FMCG.
• The Centre is collecting field inputs across more than 50 product categories, and any enforcement action will be considered only after the data is reviewed at month-end.
• Preliminary monitoring shows reductions in nearly 90% of sectors, though older inventories may slow benefits for small and unregistered retailers.
• GST 2.0 consolidates rates to 5% and 18% with a new 40% slab for luxury and sin goods, while individual life and health insurance are exempt and dairy and 33 lifesaving drugs are zero-rated.
• The government estimates a short-term revenue impact of about ₹48,000 crore but expects offsets from higher consumption and a wider tax base, with the reforms receiving unanimous GST Council support.