GST now rests on two main rates, 5% and 18%, with a special 40% slab for select goods, making the system easier to understand and apply
Food items are at 5%, while air conditioners, large TVs, small cars and motorcycles drop to 18% from 28%, easing household budgets
Individual insurance products are exempt from GST, improving affordability and widening access to financial protection for families
Lower rates on fertilisers, textiles, and farm machinery reduce costs, addressing long-standing structural issues in key sectors
Rate cuts are expected to spur demand, add nearly one percentage point to GDP growth, and help cool inflationary pressures
The government faces a revenue hit of ₹48,000 crore, raising the question of how to protect fiscal balance while keeping GST simple