New tax slabs to kick in tomorrow; what changes for common man from September 22?

Starting September 22, 2025, India will witness one of the biggest shifts in its indirect tax system since GST was first rolled out. The GST Council, chaired by Finance Minister Nirmala Sitharaman, has announced a new two-slab structure (5% and 18%), along with a special 40% “sin tax” on luxury and harmful goods like alcohol, tobacco, betting, and online gaming. The move replaces the earlier four-tier GST system and is designed to simplify compliance, rationalize tax rates, and lower costs for consumers. Essential items will now be taxed at just 5%, while most other goods and services fall under the 18% slab. The biggest relief? Several items earlier taxed at 12% or 28% will get cheaper, with FMCG, auto, and retail companies already confirming they will pass on the benefit to customers. From household groceries to cars, here’s everything you need to know about the new GST slabs in India from September 22, 2025—and how they impact your wallet. Stay tuned with CNBC-TV18’s live blog for the latest updates:1 Min ReadNew GST Rates LIVE Updates: Starting September 22, 2025, India will witness one of the biggest shifts in its indirect tax system since GST was first rolled out. The GST Council, chaired by Finance Minister Nirmala Sitharaman, has announced a new two-slab structure (5% and 18%), along with a special 40% “sin tax” on luxury and harmful goods like alcohol, tobacco, betting, and online gaming. The move replaces the earlier four-tier GST system and is designed to simplify compliance, rationalise tax rates, and lower costs for consumers. Essential items will now be taxed at just 5%, while most other goods and services fall under the 18% slab.The biggest relief? Several items earlier taxed at 12% or 28% will get cheaper, with FMCG, auto, and retail companies already confirming they will pass on the benefit to customers.From household groceries to cars, here’s everything you need to know about the new GST slabs in India from September 22, 2025—and how they impact your wallet.Stay tuned with CNBC-TV18’s live blog for the latest updates:

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