Overview

• The new GST framework took effect on September 22, launching rate cuts on roughly 375 goods and services on the first day of Navratri.
• Most items now fall under 5% or 18% rates, with a 40% demerit band for ultra‑luxury and sin goods, while tobacco stays at 28% plus cess.
• Essential foods and healthcare see major relief, with UHT milk, paneer and Indian breads at zero rate and more than 30 life‑saving drugs fully exempt.
• FMCG pass‑through began as Amul and Mother Dairy announced lower prices on dairy and packaged foods to reflect the new rates.
• Autos and other big‑ticket categories get cheaper, with GST on small cars and two‑wheelers cut to 18% and reductions flagged for appliances, cement and hotel stays up to ₹7,500.