GST 2.0: Nirmala Sitharaman Unveils Major GST Rate Cuts To Aid The Common Man

The 56th GST Council Meeting in New Delhi concluded with landmark tax reforms. Starting September 22, 2025, coinciding with Navratri, two new GST slabs will roll out, while a 40% special rate has been introduced for sin goods. The Council accepted all GoM proposals, raising taxes on items like pan masala, aerated drinks, caffeinated beverages, and tobacco to as high as 40%, while reducing bidis to 18% to support the unorganised sector. Students and educational institutions gained relief as GST on stationery items like pencils, sharpeners, exercise books, and atlases dropped to 5% or Nil.