Goods and Services Tax, rather commonly known as GST, was first introduced in India by Prime Minister Narendra Modi and Finance Minister Arun Jaitley on July 1, 2017. It was said to have replaced a complex web of central and state taxes such as excise duty, service tax, VAT, octroi, and entry tax, unifying them under a single Goods and Services Tax (GST) framework. 8 years later, present Finance Minister of India has introduced ‘GST 2.0’ slashing previous five slab structure into a more concise 4 slab distribution.
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Also read: Electricity behind aluminium’s price tag? Then, why does Europe’s “green” metal costs so much?
When it rolled out in July 2017, the tax system was dressed in five different slabs of 0 per cent, 5 per cent, 12 per cent, 18 per cent, and 28 per cent — a buffet that often muddled industry and consumers alike. Effective September 22 2025, the GST Council has collapsed the middle layers and replaced them with just four rates.
Aluminium, the metal in question, is more or less happy
Aluminium, like most industrial metals, was parked in the 18 per cent bracket, while everyday household utensils sat at 12 per cent and the less-lucky foil, doors, and windows were slapped with the ‘luxury’ 28 per cent. For years, this patchwork fuelled endless debates about tax rationalisation and whether GST had really lived up to its “one nation, one tax” slogan.
Fast-forward to September 2025, and the GST Council has pressed the reset button. The new 2.0 regime is leaner, and arguably sharper: four slabs at 0 per cent, 5 per cent, 18 per cent, and a steep 40 per cent reserved for sin and ultra-luxury goods.
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