A simplified Goods and Services Tax (GST) regime is set to take effect on September 22, featuring two main tax rates: 5% and 18%. A higher rate of 40% will be applied to specific goods such as pan masala, cigarettes, and sugary and carbonated drinks. Finance Minister Nirmala Sitharaman stated that many items typically bought by the middle class will now be subject to the 18% tax slab, leading to price reductions. These include televisions, air conditioners, and motorbikes with engines under 350cc. The reforms, according to Sitharaman’s office, are designed to improve the daily lives of citizens and to make doing business easier.
New GST Structure to Reduce Costs for Common Household Goods
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