<h1>GST overhaul from Sept 22: two main rates 5% and 18%, 40% levy for select luxury/racing vehicles, EVs at 5%</h1> The GST Council approved a legal overhaul of the GST structure effective September 22, replacing four slabs (5, 12, 18, 28%) with two primary rates (5% and 18%) plus a special 40% levy for select luxury/racing vehicles. Petrol, LPG and CNG cars under 1,200 cc and 4,000 mm length, diesel cars up to 1,500 cc and 4,000 mm, and motorcycles up to 350 cc move from 28% to 18%; electric vehicles remain at 5%. Auto components are standardized at 18%, and compensation cess variability remains relevant for total tax incidence. The reforms aim to simplify compliance, reduce grey-market distortions and support MSMEs and industry competitiveness.