Overview

• Finance Minister Nirmala Sitharaman said the new structure replaces the 12% and 28% slabs with 5% and 18%, with a 40% rate for luxury and sin goods, starting September 22.
• She stated that 99% of items previously at 12% move to 5% and about 90% of items at 28% shift to 18%, with officials highlighting rising GST collections and taxpayer registrations.
• Everyday essentials and healthcare see sharp relief, with UHT milk, paneer and breads at zero tax, common medicines at 5%, 36 lifesaving drugs exempt and health insurance made tax‑free.
• Automotive taxes are being lowered for mass segments, with reports noting small cars up to 1200 cc petrol or 1500 cc diesel and under four metres now at 18%, while a 40% rate applies to premium categories.
• Analysts say household savings hinge on companies passing through cuts, as quick‑commerce faces 18% GST on delivery charges that could add roughly Rs 2–2.5 per order and temper price reductions.