New slabs come into effect today – check what gets cheaper

New GST rates lists LIVE updates: India’s GST 2.0, a major overhaul of the country’s indirect tax system, has come into effect on Monday, September 22, simplifying the structure and rationalising rates across goods and services. The reform, timed with the first day of Navratri, has been termed a “GST Bachat Utsav” (Savings Festival), aimed at boosting consumption and making products cheaper for consumers nationwide.

The 56th GST Council, chaired by Finance Minister Nirmala Sitharaman, has merged the earlier four tax slabs into two main categories, alongside a “sin tax” bracket for certain luxury and demerit goods:

• 5% slab – essential goods like groceries.
• 18% slab – most other goods and services.
• 40% slab – luxury and sin items such as tobacco, alcohol, betting, and online gaming.

Prime Minister Narendra Modi, addressing the nation ahead of the rollout, highlighted that the combined benefit of GST cuts and prior income tax reductions would result in savings of around ₹2.5 lakh crore for citizens. He said the GST Bachat Utsav would allow people to purchase items more easily and benefit a wide section of society, including the middle class, farmers, traders, youth, and women.

Products ranging from groceries to electronics have already become cheaper due to the lower GST rates. The move is being seen as a major step towards promoting Aatmanirbhar Bharat and encouraging swadeshi products.

Catch latest updates, reactions, and insights on the implementation of GST 2.0 here.