The Goods and Services Tax (GST) in India has undergone its biggest overhaul since its 2017 launch. In the 56th GST Council meeting, the government approved a simplified structure, reducing the old multi-tier system (0%, 5%, 12%, 18%, and 28%) to just two main slabs—5% and 18%—plus a 40% “sin & luxury” slab for select items.
This reform takes effect from September 22, 2025, aiming to reduce household costs, boost consumption, and simplify compliance for businesses.