<h1>GST overhaul cuts general slabs to 5% and 18%, adds 40% luxury rate, exempts life and health insurance</h1> The GST Council, a constitutional body, approved a comprehensive overhaul of the Goods and Services Tax regime, reducing general slabs to 5% and 18%, introducing a special 40% rate for select luxury/tobacco items, exempting individual life and health insurance premiums, and setting most changes effective September 22. An opposition party labelled the package incremental and criticised failure to extend state compensation for five years, warning remaining design flaws-rate complexity, classification disputes, inverted duty structure, and MSME compliance burdens-may persist and could prompt litigation or demands for further federal-state negotiations.