<h1>Union notifies new two-tier GST rates effective Sept 22; most goods at 5% or 18%, ultra-luxury 40%</h1> The Union Finance Ministry has notified Central GST rates for goods effective September 22, requiring states to notify corresponding State GST rates; GST revenue continues to be shared equally between the Centre and states. The regime shifts to a two-tier structure with most goods and services taxed at 5% and 18%, ultra-luxury items at 40%, while tobacco and related products remain at 28% plus compensation cess. The change, approved by the GST Council on September 3, reduces rates for many items and imposes compliance obligations on businesses to update ERP/pricing and implement the new rates to ensure benefits reach consumers.