Overview

• The approved GST 2.0 consolidates most rates into 5% and 18%, shifting many items previously at 12% and 18% down to 5%.
• A new 40% slab targets tobacco products, sweetened and carbonated beverages, and high-engine-capacity luxury cars, with the higher rate taking effect on September 22.
• Uttar Pradesh minister Jayveer Singh lauded the changes as pro-poor and supportive of MSMEs, saying they would boost activity and improve money circulation.
• Samajwadi Party spokesperson Fakhrul Hasan Chand criticized the package for not addressing prices of staples and for keeping petrol and diesel outside GST, warning of pressure on households.
• Former finance minister P. Chidambaram endorsed simplification but said the government took eight years to correct the original design despite earlier advice from economists.