New GST rates LIVE updates: GST rates rationalisation may not pose fiscal burden on govt, says Crisil

New GST rates LIVE updates: The Goods and Services Tax (GST) regime is set for a major revamp beginning September 22, 2025 (Monday). The government has announced a simplified rate structure following the recommendations of the 56th GST Council meeting held earlier this month under the chairmanship of Union Finance  Minister Nirmala Sitharaman.

From Monday, GST will move to a two-tier system, where the majority of goods and services will attract tax at either 5% or 18%.

Key highlights of the revised framework include:

• Ultra-luxury items will face a steep 40% GST.


• Tobacco and related products will remain in the 28% plus cess category.


• The existing four-slab structure of 5%, 12%, 18% and 28% will be discontinued.

The restructuring aims to provide relief to individuals, especially the middle class, while easing compliance for businesses and simplifying trade under GST.

Introduced in 2017, GST has until now operated with four major slabs, in addition to a compensation cess on luxury and sin goods. The upcoming changes mark one of the most significant reforms in the indirect tax framework since its launch.

Catch LIVE updates on new GST rates: