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**GST Council Approves Sweeping Rate Changes, Simplifies Tax Structure**

**New Delhi, India –** In a landmark decision, the GST Council, chaired by Finance Minister Nirmala Sitharaman, has approved a major overhaul of the Goods and Services Tax (GST) structure during its 56th meeting held in New Delhi on Wednesday. The council has consolidated the existing four GST slabs into a simplified two-slab system, with rates of 5% and 18%.

The move eliminates the previous 12% and 28% GST slabs, bringing a wide range of goods under the newly approved rates. “Our focus is on the common man,” stated Finance Minister Sitharaman, emphasizing that the revised structure aims to benefit everyone from farmers to laborers. All state finance ministers present at the meeting supported the decision, acknowledging the need for the reforms.

**What Will Be Cheaper?**

Consumers can expect price reductions on a variety of essential items. UHT milk, paneer (Indian cheese), pizza bread, roti (flatbread), and paratha (layered flatbread) will now fall under the 0% GST slab, becoming tax-free. Daily household items like shampoo, soap, and cooking oil will be taxed at the new, lower rates. Additionally, snacks such as namkeen, pasta, coffee, and noodles will be included in the 5% GST slab. Smaller cars, motorcycles, and cement will also see a reduction, moving from 28% to 18% GST. Televisions will experience a similar decrease, while 33 life-saving drugs, including three cancer medications, will be completely exempt from GST.

**Luxury Goods in Higher Slab**

A special 40% tax bracket has been created for super-luxury items and goods considered harmful. This includes pan masala, cigarettes, gutka and other tobacco products, flavored carbonated beverages, and fast foods.

**Implementation Date**

According to the Uttar Pradesh Finance Minister, the new GST rates will take effect on September 22nd. This marks the first major GST reform since Prime Minister Narendra Modi’s call for a review of the system on August 15th.

**Next-Generation Reforms**

The GST Council’s decision represents a significant step toward next-generation GST reforms. The consolidation of tax slabs is expected to improve compliance, reduce complexity, and ultimately benefit consumers and businesses alike. Himachal Pradesh Minister Rajesh Dharmani echoed this sentiment, stating that all members agreed on the need to rationalize GST rates.

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