<h1>Council approves GST overhaul: two main rates 5% and 18%, special 40% on luxury items, changes from Sept 22</h1> A tax-setting council unanimously approved a comprehensive overhaul of the goods and services tax, replacing four slabs (5, 12, 18, 28%) with two primary rates (5% and 18%) plus a special 40% rate for select luxury items; most changes take effect Sept 22. Daily staples remain nil-rated, many common food and personal-use goods move to 5% from higher rates, cement and certain automobiles drop to 18%, while high-end cars, large motorcycles and luxury personal conveyances attract 40%. Individual life and health insurance policies are zero-rated, EVs remain at 5%, and tobacco products retain 28% plus compensation cess until related state-revenue loans are repaid.