A major overhaul of the goods and services tax (GST) system comes into force tomorrow, Sept. 22. The changes, cleared by the GST Council earlier this month, will alter the tax burden across a wide range of items used every day.
Finance Minister Nirmala Sitharaman said the Council decided to move away from the earlier four-slab structure of 5%, 12%, 18% and 28%, opting instead for a simpler two-rate system of 5% and 18%. A higher rate of 40% has been reserved for certain categories such as high-end vehicles, tobacco and sin goods.
The new structure is expected to ease costs on several household essentials while raising levies on discretionary and luxury products. Everyday items such as food staples, toiletries and footwear will see a reduction, while services like business-class air travel and products like gaming and caffeinated drinks will attract higher tax.
See which products are getting cheaper and which are becoming more expensive under GST.
