Overview

• Rates collapse to 5% and 18% with a separate 40% slab for select sin and luxury goods, with most changes effective September 22 and tobacco-related items retaining existing arrangements for now.
• Premiums for individual life and health insurance move to a nil rate from 18%, while a wide range of daily-use goods, farm inputs and consumer durables shift into lower slabs.
• Select beverages such as carbonated drinks move to 40%, and smaller cars and many appliances drop to 18%, with EVs staying at 5% according to multiple summaries of the Council’s decisions.
• States welcome simplification but flag potential revenue risks; Tamil Nadu seeks protections and faster IGST settlement, and authorities outline measures on refunds, registration and in‑transit supplies.
• Finance Minister Nirmala Sitharaman says the revamp was long-planned and not tariff-driven, as a separate 50% US levy now in force threatens near-term textile and apparel exports.