New GST rates Highlights: Mukesh Ambani welcomes India’s second-generation GST reforms
New GST rates Highlights: In a sweeping reform, the GST Council approved a major overhaul of the goods and services tax regime, cutting rates on a wide range of common-use items — from hair oil and corn flakes to TVs and personal health and life insurance policies.
The move, aimed at boosting domestic consumption and cushioning the impact of US tariffs, will see the current four-tier structure of 5%, 12%, 18% and 28% replaced with two primary slabs of 5% and 18%.
Finance Minister Nirmala Sitharaman said all decisions were taken unanimously with states in agreement.
The new rates, effective September 22, will coincide with the start of Navratri. Daily essentials will continue under the nil tax bracket, while food and beverage items such as butter, ghee, dry fruits, biscuits, ice cream, namkeen, and corn flakes will now attract a lower 5% rate instead of 18%. High-end cars, tobacco and cigarettes will remain under a special 40% slab.
