Overview

• GST Council’s revamp streamlines rates to 5% and 18% with a 40% band for luxury and sin goods, taking effect on September 22 ahead of the festive season.
• About 99% of items previously taxed at 12% move to 5%, with more than 350 goods seeing cuts, including many foods, household products and some essentials at zero.
• Officials say classification disputes have been resolved, all food falls at 5% or nil, new registrations target three days, and 90% of refunds will be granted provisionally.
• Sitharaman says the overhaul will lower input costs and spur demand, noting GST registrations have risen from roughly 65 lakh in 2017 to 1.5 crore and gross collections to about ₹22 lakh crore.
• Business commentary cautions that consumer gains depend on companies passing through the cuts, and editorials flag an estimated revenue gap near ₹48,000 crore that could keep state compensation in focus.