Overview

• The GST Council’s overhaul collapses slabs to 5% and 18% with a 40% rate for sin and luxury goods, taking effect on September 22.
• Piyush Goyal called the cuts transformational and said the Centre will closely monitor companies to ensure tax reductions reach consumer prices.
• Many staples and FMCG items shift to lower rates, including zero on select essentials and 5% on packaged foods and personal care products.
• Karnataka welcomed the change but projected a Rs 15,000–20,000 crore revenue loss and sought compensation-cess devolution to states.
• Punjab industry groups warned of a 13% inverted-duty gap for bicycles and raised concerns in textiles, even as brokerages see medium-term gains for consumption and FMCG, with CPI potentially easing by 25–50 bps.