- India’s GST Council has approved a new tax regime with two main GST rates of 5% and 18%, replacing the current four-rate system. A 40% rate will apply to sin goods and luxury items. Jewelry and precious stones will retain their current rates. Basic commodities and household goods will be taxed at 5%, while items like air conditioners and vehicles will be taxed at 18%. The textile industry and renewable energy devices will be taxed at 5%. Agricultural and labor-intensive goods will see a GST reduction to 5%. Most drugs and medical equipment will be taxed at 5%, with some life-saving medicines exempt. Changes are set to take effect on September 22, 2025.
Source: answerconnect.cch.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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