Overview

• From September 22, the GST structure shifts to two slabs of 5% and 18% with a 40% rate for ultra‑luxury and demerit goods, making about 375 items cheaper.
• Prime Minister Narendra Modi launched a nationwide “GST Bachat Utsav,” calling the changes a double bonanza with recent income‑tax relief and claiming over Rs 2.5 lakh crore in annual savings.
• Amul revised prices across more than 700 packs, leading appliance makers cut tags on ACs and dishwashers, and Indian Railways reduced Rail Neer to Rs 14 for 1L and Rs 9 for 500ml.
• Sectoral fitment includes two‑wheelers up to 350cc, small cars and auto parts moving to 18%, tractors under 1,800cc at 5%, cement at 18%, and renewable‑energy equipment at 5%, with several medical items exempted or at 5%.
• Services also see relief, with lower GST on many hotel rooms and personal services, as the government pitches simpler compliance and MSME support under the streamlined regime.