GST Rate Structure Is Overhauled

At its 56th meeting on 3 September 2025, the Goods and Services Tax Council approved a major rationalisation of India's GST rate structure. Most of the new rates took effect on 22 September, reorganising the system around main rates of 5% and 18% while retaining a 40% special demerit rate for selected goods and services and delaying the new treatment of specified tobacco products. The package also changed rates across numerous sectors, exempted individual life and health insurance policies and included wider compliance and refund reforms.