New Delhi, September 22: The Government of India has rolled out a major overhaul of the Goods and Services Tax (GST) regime, introducing a simplified two-tier tax system and revised rates for over 375 goods and services, aimed at reducing consumer prices nationwide.
Under the new framework, most items will attract either a 5 per cent or 18 per cent GST, replacing the previous four-slab system. A higher 40 per cent rate will be levied only on ultra-luxury products, sin goods, and other demerit items. Essential commodities such as food grains, medicines, and daily-use consumer goods remain in the 5 per cent bracket, ensuring affordability for the common man.
Several mid-range items are expected to become cheaper with the removal of the 12 per cent slab. Products benefiting from reduced GST rates include ghee, butter, paneer, coffee, snacks, jams, ketchup, dry fruits, and ice cream. The government stated that the move is aimed at providing financial relief to urban and semi-urban households, especially ahead of the festive season.
Prime Minister Narendra Modi, marking the launch, announced the beginning of a nationwide “GST Utsav” from the first day of Navratri, calling it a “festival of savings.” Addressing the nation, he said: “Next-gen GST reforms are being implemented from tomorrow. From September 22, people will be able to buy their favourite items at lower prices. The poor and the new middle class are getting double benefits after the GST rate cuts.”
The Union Finance Ministry notified the revised Central GST (CGST) rates on September 18, with state governments issuing corresponding State GST (SGST) notifications. The combined effect of these changes officially came into force today.
