New Delhi, Sept. 5 -- The Goods and Services Tax (GST) Council, at its 56th meeting, announced a major overhaul of the tax structure, effective 22 September 2026. The current four-tier system has been rationalised into a simplified two-tier framework of 5% and 18%, with a special de-merit rate of 40% for select goods and services.

Out of 453 goods with revised GST rates, 413 items saw rate reductions, while only 40 items witnessed an increase. Nearly 295 goods, previously taxed at 12%, have now been brought under the 5% or NIL bracket.

According to Soumya Kanti Ghosh, Group Chief Economic Advisor at State Bank of India (SBI), the move is expected to lower the effective weighted average GST rate from 11.6% in September 2019 to 9.5% now, ...