- 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
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