56 GST Council has approved a major rate rationalisation by introducing a simplified dual tax structure.
New Tax Slabs: Only 5% and 18% GST rates will remain in effect.
Eliminated Slabs: The earlier 12% and 28% slabs have been removed.
Special Rate: A 40% tax rate will be levied on sin goods (such as tobacco, pan masala, and certain luxury items).
Effective Date
These new GST rates will come into effect from 22nd September 2025, which also marks the first day of Navratri.
Why It Matters
Brings simplicity to the GST framework.
Reduces compliance burden for taxpayers.
Aims at better revenue mobilisation with special rate on sin goods.
📌 Stay tuned for detailed notifications and sector-wise implications.56 s