Key GST Reforms & New Rates 1. Simplified GST Structure The GST Council approved a major overhaul, reducing the previous four-tier system (5%, 12%, 18%, 28%) to a streamlined two-tier structure: 5% and 18% . https://www.arc-worldwide.com/worldwide-transport.html Additionally, a new 40% “sin/super-luxury” slab has been introduced for items like high-end cars, tobacco, IPL tickets, casinos, and carbonated beverages. Reuters+3Reuters+3Reuters+3 The Economic Times+2The Economic Times+2 The Times of India 2. Effective Date These changes are set to take effect from September 22, 2025 , coinciding with the start of Navratri. The Economic Times Reuters+1 The Times of India+1 mint The Economic Times The Indian Express Press Information Bureau What Gets Cheaper, What's Exempted, and What's Taxed Higher Reduced GST to 5% (from 12% or 18%) Common consumer goods like toothpaste, shampoo, soaps, hair oil, toothpaste, toothbrushes . Packaged foods : ...