<h1>GST slabs cut to two main rates (5% and 18%) with 40% levy on select goods, nil for essentials</h1> The GST Council approved a sweeping legal reclassification of GST slabs, rationalising rates from four tiers to two principal rates (5% and 18%) with a special 40% levy for select goods and services, effective September 22; daily-use foods, many personal items and education stationery see nil or 5% rates, while numerous consumer electronics, vehicles and cement move to 18%. All individual life and health insurance policies are shifted to nil tax. Tobacco and certain excisable products remain under higher rates plus compensation cess pending loan repayment. The government estimates a fiscal impact of Rs 48,000 crore; the measure was unanimously approved.