<h1>GST revamped: rates simplified to 5% and 18%, 40% for luxury/tobacco; life and health insurance premiums exempt Sept 22</h1> A government tax panel approved a statutory overhaul of the goods and services tax regime, consolidating four rate slabs into two principal rates (5% and 18%) with a special 40% rate for select luxury/tobacco items, and exempting premiums for individual life and health insurance; changes take effect Sept. 22. The measure is described as unanimous among central and state representatives. An opposition leader criticized the move as a belated reversal of an eight-year policy, arguing initial GST design and rates were flawed and that the revisions aim to ease costs for common goods and stimulate domestic spending.