GST overhaul: Diwali bonanza awaits consumers as tax slabs reduce
Big news for your wallet—India's GST system is set for a major revamp. The government plans to drop the current four tax slabs and go with just two: 5% and 18%.
Most goods that were taxed at 12% will move to the lower 5% slab, which should make everyday items more affordable.
The Prime Minister has promised a "Diwali bonanza" aimed at easing costs for consumers.
What will get cheaper?
Expect essentials like processed foods and mobile phones to get cheaper, especially helping students and the middle class.
Rural areas could see relief on things like handicrafts and farm equipment.
For traders and small businesses, the simpler tax structure means less paperwork, quicker refunds, and easier calculations—making it smoother to run a business.
To balance things out, luxury items like tobacco might see a higher special rate of 40%.