New GST Rates List Live Updates: GST 2.0, a major overhaul of the country’s indirect tax system, has come into effect today, September 22, with a decrease in tax on essential items to boost consumption nationwide and rationalisation of rates on other products. Termed as GST Bachat Utsav (Savings Festival), coinciding with the first day of Navratri, products ranging from groceries to electronics have become cheaper from today on account of a lower GST rate.
The 56th GST council, led by Finance Minister Nirmala Sitharaman, has merged the previous four slabs into two main categories with an additional “sin tax” bracket:
5% slab — for essential goods.
18% slab – for most other goods and services.
40% slab – for luxury and sin goods such as tobacco, alcohol, betting, and online gaming.
This consolidation is expected to make tax compliance easier and also reduce prices on many items currently taxed at 12% or 28%.
Prime Minister Narendra Modi, while addressing the nation on Sunday ahead of the implementation of GST 2.0, said that people will save Rs 2.5 lakh crore, with the combined benefit of the goods and services tax (GST) cuts and the earlier Income Tax reduction.
PM Modi congratulated people on the GST Bachat Utsav (savings festival) kicking off on September 22 — the first day of Navratri. “GST Bachat Utsav would lead to savings and people will be able to purchase things easily,” he said.
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