New Delhi, Sept. 4 -- The GST Council announced an early Diwali gift for Indian consumers by significantly cutting rates on most fast-moving consumer goods and consumer durables. The aim is to boost consumption, which has been subdued despite the income tax relief announced in the Budget 2025.

Exceeding expectations, the GST Council, chaired by Finance Minister Nirmala Sitharaman, on Wednesday moved most items from 12 per cent or 18 per cent bracket to 5 per cent bracket. The Council abolished the current rate structure of four rates and announced the two rates of 5 per cent and 18 per cent. The 12 per cent and 28 per cent slabs have been scrapped.

The new GST rates will be effective from September 22 this year.

In a broad sense, lower...