<h1>Government shifts GST to mainly two rates (5% and 18%), cuts rates on 375 items, keeps compensation cess</h1> The prime minister announced implementation of revised GST rates effective Sept 22, shifting India's GST to a predominantly two-tier structure (5% and 18%) with higher rates for ultra-luxury and sin goods, and rate reductions on about 375 items. The government and states, via the GST Council, authorized the changes intended to lower consumer prices, simplify compliance, and benefit MSMEs; compensation cess remains for certain goods. The statement urges states to promote domestic manufacturing and businesses to pass on benefits. Estimated aggregate citizen savings from these and recent tax measures was cited as a legal-economic justification for rollout.