New GST Notification Issued: These Products to Get Cheaper in 4 Days, Companies Also Gearing Up

National Desk: The central government on Wednesday issued a notification for the revised Goods and Services Tax (GST) rates, which will come into effect from 22 September. This follows the decisions taken at the 56th GST Council meeting held on 3 September and will replace the earlier notification dated 28 June 2017.

What’s New in the GST Rules?

As per the new framework, goods and services will now be taxed under the revised GST slabs from 22 September. The government has already directed states to implement these changes, and respective state notifications will soon follow.

The GST Council decided to abolish the 12% and 28% slabs, introducing two primary rates — 5% and 18%. While a 40% rate had been proposed for sin and luxury goods, the additional cess on these items has been removed.

Government and Industry Preparations

The Central Board of Indirect Taxes and Customs (CBIC) is working closely with industry stakeholders to ensure a smooth transition. A notification has also been issued regarding new product labeling based on the revised prices.

Industries are preparing to pass on the benefit of reduced taxes to consumers, while also updating their ERP systems, pricing mechanisms, and supply chains in line with the new tax rules.

EY Tax Partner Saurabh Agarwal noted, “This change is strategically very important to ensure the system functions efficiently and that the benefit reaches the end consumer.”

Essential Items to Become Cheaper

With this GST restructuring, many everyday essentials are set to become cheaper. Most products earlier taxed at 28% will now fall under the 18% slab, while several 12% slab products will shift to the 5% category. Some food items previously taxed at 18% will also move to the 5% slab.

As a result, products like toothpaste, soap, shampoo, air conditioners, cars, bikes, and televisions will see reduced GST rates, offering much-needed relief to consumers.