Goods and Services Tax (GST) was introduced in India with a view to promoting consumption and production efficiencies with a tax system that was destination-based. The objective was to ensure that the tax incidence fell on final consumers and taxes paid on inputs were rebated. The way GST evolved in the presence of a complex compensation cess mechanism continued to suffer from multiple tax rates, inverted duty structure and considerable compliance cost.

The new rate structure, which takes effect from September 22, 2025, implies significant rate reductions for some categories of goods. In the revised GST rate structure, 12% and 28% rates have been discontinued. The rates of 0%, 5% and 18% have been continued with changes in the goods and services covered under these rates. There is also a

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