GST overhaul starts September 22: What to expect
India is shaking up its tax system—starting September 22, GST will move from four slabs to just two rates.
The goal? Make life simpler for businesses and help everyday essentials cost less at checkout.
Two rates instead of 4
There'll now be just two main GST rates: 5% for essentials and 18% for most other stuff.
This should cut down on confusion and paperwork, while making certain daily-use items a bit more affordable.
Medicines, drones, hotels, insurance services
Pharma companies need to update MRPs to match the new tax, but medicines already in stores won't need relabeling—just price updates at the counter.
Drones get a flat 5% rate now (no more tiers), sand-lime bricks drop from 12% to 5%, and hotels charging under ₹7,500 per night stick with a low 5% GST.
Plus, individual life and health insurance services are now GST-free.