India has cut taxes on hundreds of goods by simplifying its Goods and Services Tax (GST) structure. The new two-slab system—5% and 18%—will replace the older four-tier setup, while sin goods like cigarettes will face a 40% tax. Finance Minister Nirmala Sitharaman says the move aims to boost consumption and offset the effects of steep U.S. tariffs. Items like food, school supplies, and insurance will become cheaper, just in time for India’s festive season. However, analysts warn the government could face revenue losses of up to $6 billion.
