<h1>Government to implement revised GST from Sept 22: two rates 5% and 18% plus 40% demerit levy</h1> The national indirect tax authority announced readiness to implement revised GST rates effective September 22 (excluding tobacco), moving from multiple slabs to two standard rates of 5% and 18% plus a 40% levy for demerit/ultra-luxury items; backend systems and industry software upgrades are being coordinated to ensure a smooth technical transition. The reclassification is based on 'merit' versus 'standard' rather than revenue neutrality. Businesses may utilise accumulated input tax credit (up to the statutory limit) to discharge tax liabilities after the change; short-term revenue softening is anticipated, with collections expected to recover within months.