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GST (Goods and Services Tax)
GST, introduced in July 2017, replaced many separate central and state taxes with one tax collected at each stage of production and sale. Since September 22, 2025, most items are taxed at 5% or 18%, with a 40% rate for sin and luxury goods.
Why It Matters
GST shows up in the price of almost everything you buy.
In India
The 2025 overhaul cut GST on items like toothpaste, small cars and televisions, and exempted individual health and life insurance premiums entirely.
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