Big GST Reforms: Govt Reduces Rates | What It Means For Consumers, Auto Sector & Economy?

The GST Council has announced a major overhaul of India’s tax structure, simplifying it into three slabs — 5%, 18%, and 40%. This festive-season reform comes as Prime Minister Narendra Modi’s big “GST gift” for the common people, first hinted at in his Independence Day address from the Red Fort. Business Today’s Karishma Asoodani explains the key reforms: several goods have been shifted to lower tax brackets, bringing relief for consumers and industries. Most items, including automobiles, now fall under the 18% slab, while luxury cars, premium motorcycles, carbonated drinks, cigarettes, paan masala, and caffeinated beverages have been placed in the new 40% slab.