Overview

• The new regime replaces the earlier 5/12/18/28% structure with two rates of 5% and 18%, retains a 40% band for super‑luxury and demerit goods, and keeps tobacco at 28% plus cess.
• Key shifts include small cars and two‑wheelers moving to 18%, tractors under 1800cc to 5%, and cement to 18%, while several life‑saving drugs and diagnostic kits become GST‑exempt.
• Companies began passing on benefits, with Amul cutting prices across more than 700 packs and major appliance makers lowering ACs and dishwashers by up to ₹4,500 and ₹8,000.
• Indian Railways reduced Rail Neer to ₹14 for 1‑litre and ₹9 for 500 ml, and hotel stays priced up to ₹7,500 per night now attract 5% GST.
• The Prime Minister says combined GST cuts and earlier income‑tax changes will save citizens ₹2.5 lakh crore and he projects gains for MSMEs, investment and ease of doing business, urging purchases of Made‑in‑India goods.