Overview

• The Centre’s plan, endorsed in principle by a GoM, collapses slabs to 5% and 18% with a 40% levy for select sin and luxury goods, pending Council approval.
• Reports indicate rollout is being fast-tracked for the festive window around Sept 22, with notifications expected within 5–7 days of a Council decision and about two weeks for system changes.
• Fitment proposals under discussion include moving all food and textile items to 5%, cutting cement to 18%, zero GST on individual health and life insurance, reducing rates on some salon services, and taxing small cars at 18% with bigger cars at 40%.
• An official near-term revenue shortfall of about Rs 40,000 crore is flagged, with other estimates at Rs 60,000–85,000 crore, alongside an additional ~Rs 20,000 crore hit from curtailed online gaming receipts, prompting state calls for compensation.
• Auto dealers warn of deferred purchases and seek earlier implementation to protect festive sales, a factor cited in advancing the Council meeting to Sept 3–4.