Overview

• India’s GST is being simplified to two main rates of 5% and 18% with a 40% demerit band for sin and ultra‑luxury goods, taking effect on September 22.
• The 12% and 28% slabs are scrapped, several essentials move to a zero rate, and reduced rates apply to roughly 375 items spanning food, medicines, devices and appliances.
• Companies announced pass‑throughs: Amul cut prices on 700‑plus packs, leading appliance makers trimmed MRPs on ACs and dishwashers, Rail Neer lowered bottle prices, and small cars and sub‑350cc bikes shift to 18%.
• Implementation of new rates for pan masala and multiple tobacco products will be deferred until compensation‑cess loan and interest obligations are fully cleared.
• The Centre issued operational guidance and vowed price‑pass monitoring, the finance minister projected a Rs 2 lakh crore boost to households, and the BJP will run a ‘GST savings festival’ from September 22–29.