India, Sept. 4 -- Centre's new GST rationalisation exercise has redrawn India's indirect tax map, but mobile phone buyers will have to wait longer for relief. The Council has decided to keep the tax rate on mobile phones unchanged at 18%, even as other sectors witnessed sharp cuts.

The 56th GST Council meeting, chaired by Finance Minister Nirmala Sitharaman, announced the biggest reform since GST was introduced in 2017.

The four-tier structure of 5%, 12%, 18% and 28% has now been collapsed into two slabs - 5% for essentials and 18% for standard goods. A special 40% rate has been reserved for luxury items and demerit goods such as high-end cars, tobacco, liquor, and online betting.

The reforms, effective from September 22, 2025, are bei...