The revised goods and services tax (GST) regime, which came into effect from September 22, significantly overhauls India’s tax system as it seeks to cut prices of daily essential goods and improve business compliance.

The latest version of the indirect tax system, introduced first in 2017, curtails the number of slabs to just two – 5 percent and 18 percent, from the earlier four slabs. A sin good tax rate of 40 percent has also been introduced for luxury and tobacco products.

The GST Council, which comprises of both Centre and states, had passed the proposals in its September 3 meeting.

Experts hope the tax cuts will help bring down prices of most daily items and fuel a demand surge as the festival season begins.

The new rates will be effective on some of the most popular food items of

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