Overview

• The reform compresses GST into two principal rates and reserves a 40% band for luxury or sin goods, replacing most uses of the 12% and 28% slabs.
• Government communications reported by media say more than 175 items will get cheaper, with many daily-use foods GST-free and numerous medicines moving to 5% or zero, while medical devices are set at 5%.
• Consumer electronics see major reductions, including air conditioners, washing machines and dishwashers cut from 28% to 18%, though TV rates are inconsistently reported, with one account putting all TVs at 18% and another citing 5% for up to 32 inches and 18% above that.
• Individual life and health insurance premiums are reported to become GST-exempt from Sept. 22, eliminating the current 18% levy and lowering out-of-pocket policy costs.
• FICCI welcomed the overhaul as growth-friendly and consumption-boosting, while officials signal revenue safeguards and note that precise classifications and operational guidance will come through gazette notifications.