Booster Dose for Market ? Historic GST Reform – Only Two Main Slabs Remain (5% & 18%)

In a landmark decision, the 56th GST Council meeting has approved a major tax reform. The earlier four slabs of 5%, 12%, 18% and 28% will now be merged into just two primary slabs 5% and 18% while a 40% slab will be reserved for luxury and “sin goods.” These changes will be implemented from 22nd September 2025. Key Changes in GST Rates: 0% (Exempt): UHT milk, paneer, and Indian breads like roti and paratha will now attract zero GST. 5% Slab: Packaged foods like namkeen, sauces, noodles, chocolates, ghee, butter, coffee, candies, as well as household essentials like shampoo, soap, toothpaste, kitchenware, spectacles, and agricultural tools. 18% Slab: Consumer durables such as air conditioners, large TVs, washing machines, mid-size cars, two-wheelers (below 350cc), auto parts, buses, trucks, and ambulances. 40% Slab (Luxury/Sin Goods): Cigarettes, tobacco, gutkha, sugary aerated drinks, high-end motorcycles (above 350cc), luxury cars, private yachts, and helicopters. Earlier RBI gave historical Repo rat cut to boost economy this time GST !!! What next ? Disclaimer: This is for educational purposes only. Investment in securities is subject to market risk