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The 56th meeting of the GST Council, chaired by Union Finance Minister Nirmala Sitharaman in New Delhi on September 3, has paved the way for a sweeping overhaul of India’s indirect tax structure. The changes, set to roll out from September 22, will directly impact household budgets, with a wide range of daily-use goods becoming cheaper while a few categories remain under tighter taxation.Read Also | GST Council approves highest tax rate of 40% on these goods GST 2.0 What gets cheaper The Council has approved major cuts across multiple sectors, directly benefiting households and businesses: Food and daily essentials Milk products: UHT milk will now be tax-free (down from 5%), while condensed milk, butter, ghee, paneer, and cheese have moved from 12% to 5% or nil in some cases. Staple foods: Malt, starches, pasta, cornflakes, biscuits, and even chocolates and cocoa products will see rates reduced from 12–18% to 5%. Dry fruits and nuts: Almonds, pistachios, hazelnuts, cashews, and dates, earlier taxed at 12%, will now attract just 5%. Sugar and confectionery: Refined sugar, sugar syrups, and confectionery items like toffees and candy have shifted to the 5% bracket. Other packaged foods: Vegetable oils, animal fats, edible spreads, sausages, meat preparations, fish products, and malt extract-based packaged foods have been moved to the 5% slab.Namkeens, bhujia, mixture, chabena and similar edible preparations ready for consumption form (other than roasted gram), pre-packaged and labelled to go from 18% to 5%.Waters, including natural or artificial mineral waters and aerated waters, not containing added sugar or other sweetening matter nor flavoured to move from 18% to 5%. Agriculture & Fertilisers Fertilisers (down from 12%/18% to 5%). Select agricultural inputs, including seeds and crop nutrients, rationalised from 12% to 5%. Healthcare & Education Life-saving drugs, health-related products, and some medical devices have seen rate cuts (down from 12%/18% to 5% or nil). Educational services and items such as books and learning aids: GST reduced from 5%–12% to nil or 5%. Read Also | GST Council slashes tax slabs to two to spur consumption; announces key measures for middle class Consumer goods Electronics: Entry-level and mass-use items like select appliances will move from 28% to 18%. Footwear and textiles: GST cut from 12% to 5%, reducing costs for mass-market products. Paper sector: Certain grades brought down from 12% to nil.Hair oil, shampoo, Dental floss, toothpaste to go from 18% to 5%Auto sectorGST on small cars reduced to 18% from 28%GST on motorcycles of 350cc and below reduced to 18% from 28%GST on large cars, motorcycles at 40%, no additional cess GST on all car parts to be 18% GST on EVs to be maintained at 5% Other sectors Renewable energy devices: Reduced from 12% to 5%. Construction inputs: Key raw materials reduced from 12% to 5%. Sports goods and toys: Down from 12% to 5%. Leather, wood, and handicrafts: Brought into the 5% bracket. In essence, from groceries and fertilisers to footwear, textiles, and even renewable energy, a broad basket of goods and services is set to become more affordable, providing relief to the common household, small businesses, and the aspirational middle class. GST 2.0 What gets CostlierDespite the broad-based relief, certain goods and services remain firmly under higher taxation:Sin goodsPan masala, gutkha, cigarettes, chewing tobacco, zarda, unmanufactured tobacco, and bidi will continue under existing high GST rates and compensation cess until outstanding cess-linked loans are cleared.Additionally, valuation of these products will now be shifted to Retail Sale Price (RSP) instead of transaction value, tightening compliance..All goods (including aerated waters), containing added sugar or other sweetening matter or flavoured to go from 28% to 40%Read Also | GST Council revises tax slabs for automobiles: Small vehicles get relief while SUVs face higher levyLuxury and premium itemsA new 40% slab for sin and luxury goods remains, ensuring that items like cigarettes, premium liquor, and high-end cars don’t see tax relief.Imported armoured luxury sedans will be exempt only in special cases, such as those brought in by the President’s Secretariat.Energy & fuelsCoal, which previously attracted 5%, will now be taxed at 18%, raising costs for coal-based industries.ServicesRestaurants operating within “specified premises” can no longer declare themselves eligible for the 18% with ITC option, closing a potential loophole.Certain lottery and intermediary services face redefined valuation rules, keeping their tax burden intact or higher.

The GST Council on Wednesday rationalised the indirect tax structure, cutting the current four slabs down to two answering the Indian middle class’ long-pending demand. In a landmark decision that promises to ease household budgets and lift consumer sentiment, the Council scrapped the 12% and 28% rates, retaining only the 5% and 18% slabs.Items earlier taxed at 12% and 28% will now largely migrate to the other two slabs, making a wide range of products cheaper and, policymakers hope, boosting consumption at a time when the economy is looking for fresh momentum.The changes in GST rates of all goods except pan masala, gutkha, cigarettes, chewing tobacco products like zarda, unmanufactured tobacco and bidi, will be implemented with effect from September 22, 2025.Also Read: Diwali cheer comes early for Indian middle class as Sitharaman announces GST 2.0"Pan Masala, gutkha, cigarettes, chewing tobacco products like zarda, unmanufactured tobacco and bidi will continue at the existing rates of GST and compensation cess where applicable, till loan and interest payment obligations under the compensation cess account are completely discharged," the press release stated.The reform comes weeks after Prime Minister Narendra Modi, in his Independence Day speech, promised a “Diwali gift” in the form of a GST overhaul. A Group of Ministers had subsequently vetted the Centre’s plan, which the Council endorsed at its September 3-4 meeting.What gets cheaper and costlier?Consumer durables such as air conditioners, televisions, refrigerators and washing machines will now attract 18% tax, down from 28%. Everyday essentials including ghee, nuts, bottled water (20 litres), namkeen, footwear, medicines and medical devices have been moved from the 12% slab to 5%. Common household goods like pencils, bicycles, umbrellas and hairpins will also become cheaper.Also Read: GST 2.0 gets the green light; what gets cheaper and costlier from September 22?List of items that become cheap:Milk products: UHT milk is now exempt (earlier 5%), while condensed milk, butter, ghee, paneer, and cheese move to 5% or nil from 12%.Staples: Malt, starches, pasta, cornflakes, biscuits, chocolates and cocoa products drop from 12–18% to 5%.Dry fruits and nuts: Almonds, cashews, pistachios, hazelnuts and dates fall from 12% to 5%.Sugar and confectionery: Refined sugar, syrups, toffees and candies shift to 5%.Other packaged foods: Vegetable oils, edible spreads, meat and fish products, sausages, and malt-based foods brought under 5%.Namkeens and snacks: Bhujia, mixtures, chabena and similar packaged items cut from 12% to 5%.Drinking water: Mineral, natural and aerated waters without added sugar or flavour now taxed at 5% (down from 18%).Fertilisers and select crop inputs reduced from 12–18% to 5%.Life-saving medicines, some medical devices, and health products reduced from 12–18% to 5% or nil.Books, learning aids and other education items cut to nil or 5%.Electronics: Entry-level appliances move from 28% to 18%.Footwear and textiles: Reduced from 12% to 5%.Paper: Certain grades cut from 12% to nil.Personal care: Hair oil, shampoo, toothpaste and dental floss slashed from 18% to 5%.Renewable energy equipment reduced to 5% (from 12%).Construction materials cut from 12% to 5%.Sports goods, toys, leather, wood and handicrafts shifted to 5%.Hence, from food and healthcare to education, textiles and energy, a wide set of items will now be cheaper, directly benefiting households, small businesses and consumers.What stays costlierSin Goods: Pan masala, gutkha, chewing tobacco, zarda, bidis and cigarettes remain under high GST plus cess until cess-related borrowings are repaid. Valuation will now be on Retail Sale Price (RSP) instead of transaction value to plug leakages.Sugary and flavoured drinks, including aerated waters, will see GST rise from 28% to 40%.Cigarettes, premium liquor and high-end cars remain in the top 40% slab.Imported armoured luxury sedans will only be exempt when brought in for official government use, such as by the President’s Secretariat.Coal, earlier taxed at 5%, will now attract 18%, increasing costs for coal-dependent industries.Restaurants in specified premises can no longer claim the 18% with input tax credit option.Lotteries and certain intermediary services face revised valuation rules, keeping their tax burden intact.Industry upbeat on consumption boostMarket experts and consumer goods companies are optimistic that the changes will spur demand. Market veteran Vikas Khemani told ET Now that lower GST will improve affordability and leave households with more disposable income, particularly benefiting discretionary consumption.FMCG players might be preparing to pass on the benefits. Britannia’s MD Varun Berry had said that shifting food products to 5% would directly boost demand, adding: “Biscuits are the cheapest food available everywhere, and consumption will rise once prices drop.” Wipro Consumer Care MD Vineet Agrawal echoed this view, saying reduced tax outgo will free up money for other categories.Consumption tailwinds despite tariff worriesThe GST rationalisation comes at a time when global trade headwinds and fresh tariff hikes have raised concerns about India’s export prospects. A recent 50% levy on Indian goods rattled markets, but analysts believe domestic demand will remain resilient.“Consumption has been the strongest pillar of India’s growth story,” Khemani said, adding that lower interest rates, a good monsoon, and GST cuts are likely to trigger an upswing in household spending even as external trade frictions play out.Health insurance reliefThe Council has exempted health insurance from GST, reducing the burden from the earlier 18%. The move is expected to improve penetration in a country where less than one-fifth of people are covered by private health policies. While insurers and policyholders have welcomed the relief, some states flagged concerns about revenue loss.What about government revenues?SBI Research estimated that states will remain net gainers despite short-term pressures. GST revenues, including devolution, are pegged at over Rs 14.1 lakh crore this fiscal. While eight opposition-ruled states including Himachal Pradesh, Jharkhand, Karnataka, Kerala, Punjab, Tamil Nadu, Telangana and West Bengal warned of potential losses of Rs 1.5–2 lakh crore, SBI projected that states could still receive at least Rs 10 lakh crore in SGST and Rs 4.1 lakh crore via devolution in FY26.The effective weighted average GST rate, which dropped from 14.4% at inception in 2017 to 11.6% in 2019, may now fall further to 9.5%. Evidence from earlier rationalisations suggests revenues dip initially but rebound strongly, with past rounds adding nearly Rs 1 trillion in collections.GST journeyGST was rolled out on July 1, 2017, with four slabs of 5%, 12%, 18% and 28%. A compensation cess on luxury and demerit goods helped create a revenue pool to support states, though this mechanism ended in June 2022.With the latest rationalisation, policymakers hope the simplified two-slab structure will deliver on the original promise of GST which was efficiency, affordability and a bigger consumption push for the Indian economy.

U.S. job openings fell more than expected in July and hiring was moderate, consistent with easing labor market conditions. Job openings, a measure of labor demand, dropped 176,000 to 7.181 million by the last day of July, the Labor Department's Bureau of Labor Statistics said in its Job Openings and Labor Turnover Survey, or JOLTS report, on Wednesday. Economists polled by Reuters had forecast 7.378 million unfilled jobs. Hiring increased 41,000 to 5.308 million in July. Layoffs rose 12,000 to 1.808 million. The labor market has slowed, with economists blaming President Donald Trump's sweeping tariffs. Labor supply has also declined amid the Trump administration's immigration crackdown. A Reuters survey of economists expects the government's closely watched employment report on Friday will likely show nonfarm payrolls increased by 75,000 jobs in August after rising 73,000 in July. Employment gains averaged 35,000 jobs per month over the last three months compared to 123,000 during the same period in 2024, the government reported in August. The unemployment rate was forecast climbing to 4.3% from 4.2% in July. Federal Reserve Chair Jerome Powell last month signaled a possible rate cut at the U.S. central bank's September 16-17 policy meeting, acknowledging the rising labor market risks, but also added that inflation remained a threat. The Fed has kept its benchmark overnight interest rate in the 4.25%-4.50% range since December.

Precious metals are maintaining strong momentum, with gold prices climbing to new highs and silver trading at decade-long peaks. According to Jonathan Barratt, Chief Investment Officer at ETO Group, investor appetite for safe-haven assets remains strong, with gold leading the rally despite silver’s industrial advantage.“Gold has technically broken out of a consolidation pattern, which signals further gains. The weight of demand from investors is forcing prices higher—nobody is shorting gold, everyone is buying,” Barratt said in an interview with ET Now.Gold outlookGold is currently trading near $3,640–$3,670, and Barratt believes the psychological level of $3,600 will act as a floor for the metal. “It is difficult to set exact targets at record highs, but the market momentum suggests gold could continue higher despite a firmer US dollar,” he noted.Silver outlookWhile gold remains the top performer, Barratt expects silver to deliver stronger percentage gains over the long term. He highlighted that silver could move toward $50 per ounce, a level last seen in 2011.“Many are underestimating silver’s potential. Industrial demand from electric vehicles, solar panels, and China’s push toward a green economy will be major drivers. The US is also considering reclassifying silver as a rare earth, which could further tighten supply,” he said.Copper in focusBeyond precious metals, copper has also shown strength, with year-to-date gains of around 12%. Barratt sees further upside, supported by expectations of US rate cuts and possible stimulus measures from China.“Copper is still relatively cheap, around $4.60 per pound. If China revives its manufacturing sector and the US eases policy, we could see another lift in prices,” he added.Market sentimentBrokerages remain bullish on both gold and silver as investors continue to hedge against global uncertainties, trade tensions, and shifting economic policies. Analysts expect demand to stay firm heading into year-end, with silver positioned to outpace gold in percentage terms over the longer horizon.(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)

India and Russia have set a goal of USD 100 billion bilateral trade by 2030, and Sberbank will facilitate corporates in deepening business and achieve the objective, the bank's First Deputy Chairman of the Executive Board Alexander Vedyakhin said on Wednesday. In a bid to expand trade, Sberbank has published a guide for Indian entrepreneurs planning to localise their businesses in Russia. And for Russian businesses, the bank regularly prepares a digest on the prospects of the Indian market, the bank said in a statement. Sberbank of Russia has been operating in India for 15 years, and the bank has a presence in Delhi and Mumbai. Besides, it launched an IT hub in Bengaluru. "In 2020, a trend toward India began, and we are actively promoting the Indian agenda. Our goal is to achieve USD 100 billion in trade between the two countries by 2030," he said. Russian-Indian economic partnership has great potential, but so far only part of it has been realised, he said, adding that 99 per cent of trade turnover, which currently stands at USD 63 billion, is accounted for by energy resources - diversification is needed. Bilateral trade between India and Russia reached a record high of USD 68.7 billion in 2024-25, nearly 5.8 times higher than the pre-pandemic trade of USD 10.1 billion. It comprises India's exports worth USD 4.88 billion and imports from Russia amounting to USD 63.84 billion.