<h1>Government revamps GST slabs: 5% common goods, 18% standard, 40% sin/ultra-luxury; compliance and IT reforms from Sept 22, 2025</h1> A central government-initiated review of the goods and services tax regime, prompted by the Prime Minister and executed by the Finance Minister and ministerial groups, resulted in a Council-approved reconfiguration of GST slabs: elimination of 12% and 28% tiers in favor of 5% for common goods, 18% for most items, and a 40% rate for limited sin/ultra-luxury goods, effective Sept 22, 2025. The decision followed intergovernmental Group of Ministers (GoM) deliberations and coordination with a compensation-cess GoM, and includes administrative reforms-simplified compliance, faster refunds, easier registration-and IT readiness measures; legal issues will center on implementation, taxpayer classification disputes, and enforcement of price pass-through to consumers.