Effective September 22, 2025, revised Goods and Services Tax (GST) rates will be implemented across approximately 375 categories of goods and services. This adjustment is projected to result in price reductions for a diverse range of items, spanning from kitchen staples and electronics to medicines, equipment, and automobiles.
Specific changes include a reduction in GST for cement from 28% to 18%, and for various personal care products like talcum powder and shaving cream, from 18% to 5%. Following these revisions, the GST framework will primarily feature a two-tier structure, applying rates of 5% and 18% to the majority of goods and services. Ultra-luxury items will incur a 40% tax, while tobacco and related products will maintain their 28% plus cess category.
The restructuring will notably shift approximately 99% of goods previously under the 12% GST slab to the 5% slab, and about 90% of items from the 28% tax slab to the 18% bracket, altering the current four-slab system.
Source: www.thehindu.com