Overview

• Individual life and health insurance premiums are exempted from GST, while several life‑saving medicines and many common‑use goods move to 5% or nil.
• Most items earlier taxed at 12% or 28% shift to lower slabs, with white goods and small vehicles at 18% and a wide range of foods and household items at 5%.
• The new 40% slab targets specified sin and super‑luxury items such as sugary drinks, tobacco products and large vehicles, though current GST‑plus‑cess on tobacco remains until cess loans are repaid.
• The overhaul takes effect on September 22, and the compensation cess will be wound down with transitional arrangements for tobacco and related cess‑linked items.
• Administrative measures include faster MSME and startup registration, pre‑filled returns, automated refunds for eligible taxpayers, and activation of the GST Appellate Tribunal.