Afghanistan, Sept. 4 -- India slashed GST rates on everyday goods and durables, aiming to ease living costs, boost domestic demand, and counter U.S. tariff pressures.
India's Finance Minister, Nirmala Sitharaman, announced a major overhaul of the Goods and Services Tax (GST), cutting rates on hundreds of consumer items to stimulate domestic demand in the face of painful U.S. tariffs.
The GST Council consolidated the existing four-tier tax system into just two slabs, 5% and 18%, effective from September 22, 2025. A new 40% "sin and luxury" rate will apply to select high-end goods.
Everyday items such as toothpaste, shampoo, packaged food, and medicines have been moved under the 5% bracket. Meanwhile, household durables like TVs, air condi...