Overview

• The new structure consolidates GST into 5% and 18% slabs with a separate 40% band for select luxury and sin goods, taking effect Sept. 22 following Sept. 17 notifications.
• About 99% of items previously at 12% shift to 5% and roughly 90% of items at 28% move to 18%, a refitment the finance minister says will leave ₹2 lakh crore with households at a fiscal cost of about ₹48,000 crore.
• Manufacturers and retailers announced pass‑through cuts from Monday, including Amul revising more than 700 SKUs, appliance makers trimming AC and dishwasher prices, Rail Neer lowering bottled water MRPs, and automakers rolling out reductions on small cars and two‑wheelers.
• Essentials and healthcare see steep relief with several staples moved to 0% and most medicines and devices at 5%, health and life insurance premiums exempt, cement at 18%, and salon and fitness services taxed at 5% without input credit.
• A 40% levy applies to aerated and caffeinated drinks and high‑end personal vehicles, while higher taxes on tobacco and some pan masala products will be phased later due to pending compensation‑loan obligations; consumers are advised to check MRPs as relabelling of old stock is allowed until March 31, 2026.