Overview

• Speaking in Chennai, Nirmala Sitharaman said items previously taxed at 12% have largely moved to the 5% slab, with some essentials reduced to zero.
• The GST Council on Sept. 3 approved a simplified structure with two main rates of 5% and 18%, plus a 40% band for sin and luxury goods.
• The revised rates take effect on Sept. 22, timed for the festive season after a nationwide push signaled by the prime minister.
• Officials say the changes will lower input costs, ease consumer prices, boost demand, and broaden compliance, with registrations and collections cited as rising.
• In an op-ed, former finance minister P. Chidambaram welcomed the cuts yet urged an apology for earlier higher rates and called for further simplification and decriminalisation.