
The GST Council has announced a major overhaul of India’s tax system, simplifying it into two main slabs—5% and 18% — and a special 40% slab for luxury and sin goods. The move, effective September 22, has sparked both celebration and controversy. The BJP is projecting the tax cuts as Prime Minister Narendra Modi’s festive gift to the nation, while the Congress insists the rationalisation was originally Rahul Gandhi’s idea when he criticised GST as a "Gabbar Singh Tax." Former Finance Minister P. Chidambaram called the original framework flawed, but welcomed the reset. Industry leaders, from FICCI to Maruti Suzuki to Hiranandani Group, have welcomed the reforms, calling them a boost for consumption, car sales, real estate, and infrastructure.