Overview

• The reworked GST took effect on Sept. 22, consolidating slabs to 5% and 18% and creating a 40% rate for luxury and sin goods.
• An RBI bulletin on Sept. 24 said the changes should lower retail prices, strengthen consumption drivers, and improve ease of doing business, with faster refunds and simpler registration highlighted.
• Speaking on Sept. 25, Prime Minister Narendra Modi pledged further GST reforms and said the tax burden would keep falling, citing shirt-tax math dropping to ₹35 per ₹1,000 purchase.
• Early signals point to festive-season momentum, with Economic Times reporting single-day retail sales of about 25,000 cars at Maruti Suzuki, 10,000 at Tata Motors, and 11,000 at Hyundai after rates kicked in.
• Sectoral relief includes zero or 5% GST on many essentials, exemptions for health and life insurance, lower rates on 33 lifesaving drugs, and corrections to inverted duties in textiles, autos, electronics, and construction.