New GST regime takes effect across India

Bhubaneswar(22/09/2025) : India rolled out a sweeping reform of the Goods and Services Tax (GST) from today, simplifying the tax structure to just two slabs and making a wide range of goods cheaper.

The move, announced by Prime Minister Narendra Modi, coincides with the first day of Navratri and is being described as a “festival gift” to the people. Now, two GST slabs — 5% and 18% — will remain in force.

The 12% and 28% slabs have been completely abolished.

As part of the reform, 33 life-saving medicines will now attract zero tax.

Officials said the change is aimed at reducing the tax burden on households and boosting consumption. With the restructuring, prices of food items, cars, and bikes have fallen, while consumer durables such as televisions, refrigerators, mobile phones, air conditioners and washing machines have also become cheaper.

According to government estimates, about 90% of goods now fall under lower tax brackets.

However, the prices of cigarettes and tobacco products have been increased to curb consumption. The new GST framework marks one of the most significant indirect tax reforms since the introduction of GST in 2017 and is expected to give a major boost to the middle class and the manufacturing sector.