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Next-Gen GST Takes Effect With Two Slabs and a 40% Levy on Sin Goods

The government bills the revamp as a festive-season 'savings festival' focused on cheaper essentials versus steeper taxes on harmful or luxury buys.

Overview

  • The new GST structure, effective 22 September, streamlines rates to 5% and 18% by scrapping the 12% and 28% slabs and introduces a separate 40% category for specified items.
  • Goods and services placed in the 40% bracket include tobacco products, sugar-added and carbonated drinks, certain fast foods, luxury cars, some high-capacity bikes, private jets, yachts, helicopters and IPL tickets.
  • Items that previously attracted 12% largely shift to 5%, and many that were at 28% move to 18%, with the government framing the change as relief for households and a boost for MSMEs.
  • Uttar Pradesh ordered the removal of caste references from FIRs, arrest memos and most government documents and imposed a ban on caste-based rallies, with directions to modify NCRB/CCTNS fields and legal exceptions where required.
  • The Supreme Court is scheduled to hear today the bail pleas of Umar Khalid, Sharjeel Imam and others in the 2020 Delhi riots UAPA case, as UP ATS separately reported arrests of three Bhiwandi men over alleged embezzlement of Gaza-relief crowdfunding and brought them to Lucknow on transit remand.