📊 1. GST Rate Changes (Effective Feb 1, 2026)

• The Government has restructured GST on tobacco & “sin” goods — the old 28 % slab removed. New GST rates: o 18 % or 40 % GST on tobacco products & pan masala, based on classification. o **GST compensation cess on tobacco products reduced to nil. o New MRP-based GST valuation for certain items introduced. • Alongside this, a reinstated central excise duty regime applies to specific tobacco products with compliance tied to machine/production rules. 👉 These changes come into effect from 1 February 2026. 🧾 2. Major GST Structural Reform — GST 2.0 Though implemented in September 2025, the effects are currently rolling out and relevant in January 2026: • The GST slab system was simplified — major slabs consolidated mainly into: o 5 % and 18 % o A 40 % “sin/luxury” slab for selected goods (e.g., luxury and harmful products). • Essentials (e.g., basic food items) in many cases moved to lower slabs or zero GST. • Items like consumer durables, small vehicles saw rate reductions. (This restructuring — often called “GST 2.0” — continues to affect pricing, compliance and revenue distribution across industries.)

📈 3. GST Revenue & Collections • GST collections for December 2025 were robust — crossing around ₹1.74 lakh crore, roughly 6 % higher year-on-year. • For the entire April-December FY 2025-26 period, collections also showed growth compared with the p