Overview

• The revised GST slab structure takes effect on September 22, putting most goods at 5% or 18% with a 40% band for sin and ultra‑luxury items, while electric vehicles retain a 5% rate and small internal‑combustion vehicles move to 18%.
• Tata Motors will cut prices by up to ₹1.55 lakh from September 22, Mahindra began offering benefits up to ₹1.56 lakh from September 6, and Renault announced reductions up to ₹96,395 for deliveries on or after September 22.
• Finance Minister Nirmala Sitharaman said she will personally monitor pass‑through of tax cuts to consumers and will directly engage with companies that do not comply.
• E‑commerce platforms such as Flipkart instructed sellers to revise prices to reflect lower GST, and FMCG companies are preparing price or grammage changes, while two‑wheeler brands and premium carmakers also announced cuts.
• Ministers say the reset is designed to lift consumption during the festive period, with officials acknowledging a near‑term revenue impact that has been estimated at about ₹48,000 crore.