Wed Sep 17 18:53:14 UTC 2025: Here’s a summary and a news article version of the provided text:

**Summary:**

The Union Finance Ministry has announced new CGST rates effective September 22, 2025. States are expected to follow with SGST rate notifications. The GST structure is being simplified to a two-tier system of 5% and 18% for most goods and services, with a 40% tax on ultra-luxury items and 28% plus Cess for tobacco products. The move aims to benefit consumers, and experts urge businesses to pass on the tax reductions transparently.

**News Article:**

**India Streamlines GST: Lower Rates Expected to Benefit Consumers**

**New Delhi -** The Union Finance Ministry announced today significant changes to the Goods and Services Tax (GST) structure, notifying new Central GST (CGST) rates that will take effect on September 22, 2025. States are now tasked with implementing corresponding State GST (SGST) rates.

The reform simplifies the existing four-slab structure into a predominantly two-tier system of 5% and 18% for most goods and services. Ultra-luxury items will be taxed at 40%, while tobacco and related products will remain in the 28% plus Cess category.

The move follows a decision by the GST Council on September 3rd, comprised of both central and state representatives, to lower tax rates with the express intention of benefiting consumers.

“With this clarity in place, the ball is now in the industry’s court,” said Rajat Mohan, Senior Partner at AMRG & Associates. “Businesses must promptly update their systems, revise pricing, and ensure smooth implementation of the new rates across supply chains.”

Experts emphasize the importance of businesses transparently passing on the tax reductions to consumers. Saurabh Agarwal, Tax Partner at EY, stated that industries must align their ERP systems, pricing decisions, and supply chains to ensure a smooth implementation and that the benefits of this rate rationalization are effectively passed on to the end consumer.”

The streamlined GST structure is expected to boost consumption and simplify compliance for businesses across India. The government will be closely monitoring the implementation to ensure the intended benefits reach the intended beneficiaries.

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