<h1>Tax authority coordinates with industry to update ERP for GST overhaul collapsing rates to 5%, 18% and 40%</h1> The tax authority is coordinating with industry to update software and ERP systems ahead of a statutory GST overhaul effective September 22, which will compress rates into two principal slabs (5% and 18%) plus a 40% rate for sin/ultra-luxury items, replacing the current four-tier structure and cess regime. Regulators advise that taxpayers may carry and use accumulated input tax credit (ITC) paid at prior rates to discharge tax liabilities under the new rates, though temporary ITC buildup and a short-term dip in monthly collections are anticipated, with revenues expected to normalize within a few months.