Finance Minister Nirmala Sitharaman announced significant GST rate cuts following the 56th GST Council meeting, implementing a two-tier structure of 5% and 18% effective September 22. The rate rationalization, supported by all states, aims to benefit the common man by consolidating rates and reallocating items across tax slabs.

The GST Council has approved a new 40% tax slab for sin and luxury goods, set to replace the existing cess. While the implementation date is pending, 5% and 18% slabs take effect from September 22. Finance Minister Nirmala Sitharaman announced the move, highlighting reduced tax burdens for the common person.

India’s finance ministry will begin the Budget-making exercise for 2026-27 on October 9, amidst global economic uncertainties and new US tariffs. The upcoming budget aims to boost demand, create jobs, and achieve a sustained 8% growth rate. Ministries must submit data by October 3, with the budget expected on February 1.

The Centre is advocating for a 5% GST on electric vehicles as part of a broader tax overhaul, aiming to simplify the GST structure to two main slabs: 5% and 18%. This reform seeks to lower taxes on everyday goods while opposition-ruled states are concerned about potential revenue shortfalls and are seeking compensation.

Wall Street experienced a significant downturn on Tuesday, with the S&P 500 facing its worst single-day loss in a month. The Dow and Nasdaq also declined, pressured by rising bond yields and a retreat from AI-related stocks. Simultaneously, safe-haven assets surged, with gold reaching a record high and silver crossing $40 for the first time

The Competition Commission of India (CCI) has approved Sumitomo Mitsui Banking Corporation’s (SMBC) proposal to acquire up to a 24.99% stake in Yes Bank. This move will make SMBC the single-largest shareholder in the private sector bank. The Reserve Bank of India (RBI) had previously approved the deal, paving the way for this significant investment.

Sugar stocks surged as the government permitted unrestricted ethanol production from the 2025-26 marketing year. This policy change, allowing ethanol production from various sugarcane sources, boosted investor sentiment. ISMA estimates a significant diversion of sugar towards ethanol, aiding stock management and farmer payments, driving rallies in Rajshree Sugars, Shree Renuka Sugars and others.