New Delhi, Sept. 9 -- India's GST Council has finally done what many had hoped for since 2017-simplified the regime and made it more pro-consumption. From 22 September, the goods and services tax (GST) will collapse into two main rates of 5% and 18%, plus a stiff 40% for a narrow set of luxury and 'demerit' goods.

What looks like a technical rearrangement of slabs is in fact a powerful reset that could change how households spend, companies set prices and the economy grows.

The headline is price relief where it matters most. Everyday goods-like soaps, shampoos, packaged foods, bicycles-shift to the 5% bracket. Cement, long burdened at 28%, moves to 18%, cutting construction costs. Farm equipment and irrigation tools also drop to 5%, giv...