<h1>GST rate cuts and reclassification lower indirect taxes, forcing businesses to update contracts, invoices, compliance and accounting</h1> The GST Council's broad rate reductions and reclassification of items to 0%, 5% and 18% materially lower indirect tax burdens across numerous sectors, likely increasing consumer purchasing power and reducing input costs for businesses. Legally, the changes will affect contract pricing, compliance obligations, invoice and input tax credit treatment, transitional provisions and state revenue sharing, and may prompt disputes over classification, retrospective claims and administrative interpretation. Regulators and firms must review contracts, update tax accounting, ensure correct invoice documentation, and monitor transitional rules to mitigate audit and litigation risks while assessing competition and procurement impacts as the reforms roll out.