New Central GST Rates Notified; Shooters Behind Actress Disha Patani Home Attack Killed In Uttar Pradesh; And More

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New Central GST Tax Rates Notified, States To Follow

The Union Finance Ministry has notified new Central GST rates effective September 22, with states required to align their SGST rates accordingly.

The revamped system consolidates the existing four-slab structure (5 per cent, 12 per cent, 18 per cent, 28 per cent) into a simplified two-tier framework where most goods and services will attract either 5 per cent or 18 per cent tax rates.

Ultra-luxury items will face a steep 40 per cent tax rate, while tobacco and related products remain in the 28 per cent-plus-cess category. The current compensation cess on luxury and sin goods continues unchanged.

Under GST's revenue-sharing mechanism, collections are split equally between the Centre and states. The Finance Ministry has emphasized that businesses must pass on the benefits of reduced rates to consumers while ensuring timely compliance.

US Fed Cuts Rates; India Watches Closely

The U.S. Federal Reserve cut its benchmark interest rate by 25 basis points on Wednesday, bringing the federal funds rate to a range of 4.00 per cent-4.25 per cent in its first reduction since December 2024. The widely expected move has sparked optimism in Indian financial markets as investors anticipate increased capital flows to emerging economies.

Federal Reserve Chair Jerome Powell cited moderating economic activity in US and slowing job growth as key factors behind the rate cut. Fed officials indicated that employment risks have increased, prompting the central bank to ease monetary policy.

The Fed also signalled that two additional rate cuts are likely before year-end, suggesting continued accommodation as economic conditions evolve.

Indian benchmark indices Sensex and Nifty posted gains following the Fed's announcement, driven by expectations of improved foreign investment flows. Lower U.S. yields typically make emerging markets more attractive to international investors seeking higher returns.

Market analysts expect information technology and banking sectors to benefit most from the rate cut environment. However, companies with significant overseas liabilities may face exchange rate risks at the same time.

Despite the positive market reaction, analysts warn that the impact on India may remain limited unless the Federal Reserve implements larger, more substantial rate cuts in subsequent meetings.

Other developments

India to Study Implications of Saudi-Pakistan Defence Agreement

India will examine the national security implications of a strategic mutual defence agreement signed between Saudi Arabia and Pakistan, the Ministry of External Affairs announced Thursday.

MEA spokesperson Randhir Jaiswal said the government was aware the development had been under consideration, formalizing a long-standing arrangement between the two countries. "We will study the implications of this development for our national security as well as for regional and global stability," he stated.

The Strategic Mutual Defence Agreement was signed Wednesday during Pakistani Prime Minister Shehbaz Sharif's visit to Riyadh, where he met Crown Prince Mohammed bin Salman. Under the pact, any aggression against either country will be considered an act of aggression against both.

The joint statement described the agreement as building on "nearly eight decades" of partnership grounded in "Islamic solidarity and shared strategic interests." Pakistan has historically provided military support to Saudi Arabia, with Pakistani soldiers stationed in the Kingdom for decades to protect against external threats.

The European Union unveiled a new strategic partnership framework with India on Wednesday, while warning that New Delhi's military ties with Russia could hamper closer cooperation.

EU foreign policy chief Kaja Kallas called India a "crucial" partner as she presented the comprehensive agenda covering trade, technology, security and climate. However, she expressed concerns over India's participation in Russian military exercises and oil purchases, stating these "stand in the way of closer ties."

Prime Minister Narendra Modi welcomed the strategic document, reaffirming India's commitment to peaceful resolution of the Ukraine conflict.

The EU and India are negotiating a free trade agreement, with talks scheduled for October 6-10 in Brussels. Trade between the blocs has grown 90 per cent over the past decade.

From the states

Kerala Reports 61 Cases of Deadly Brain-Eating Amoeba Infection

Kerala health authorities are on high alert following a surge in Primary Amoebic Meningoencephalitis (PAM) cases, with 61 confirmed infections and 19 deaths reported this year.

The rare brain infection, caused by Naegleria fowleri or "brain-eating amoeba," has claimed lives across age groups from a three-month-old infant to a 91-year-old. Unlike previous years when cases were clustered in specific districts, infections are now appearing sporadically statewide, complicating epidemiological investigations.

"We are not seeing clusters linked to a single water source. These are isolated cases," said Health Minister Veena George, describing it as a serious public health challenge.

PAM spreads through contaminated freshwater entering the nasal cavity while swimming or bathing in warm, stagnant water.

Symptoms mirror bacterial meningitis—headache, fever, nausea, and vomiting—appearing one to nine days after exposure. Early diagnosis is crucial and authorities urge immediate medical attention following exposure to stagnant water and symptom onset.

UP: Shooters Allegedly Involved In Firing At Actress Disha Patani's Home Killed In Encounter Near Ghaziabad

Two members of the Rohit Godara-Goldy Brar gang allegedly involved in firing outside Bollywood actress Disha Patani's Bareilly residence were killed in an encounter near Ghaziabad, Wednesday.

The joint operation by Delhi Police Special Cell, Uttar Pradesh STF, and Haryana STF resulted in the deaths of Ravinder from Rohtak and Arun from Sonipat. A Special Cell personnel was injured during the encounter.

"The duo had a direct role in the Bareilly firing case, suspected to be an intimidation tactic linked to extortion," said a Delhi Police Special Cell officer.

Unidentified gunmen had fired multiple rounds outside Patani's residence at 3:45 AM on September 12, prompting Chief Minister Yogi Adityanath to order immediate action. Police identified the shooters through CCTV footage and intelligence inputs across neighbouring states.

Authorities recovered Glock and Zigana pistols with ammunition from the encounter site. Investigation continues to trace remaining gang members.

You’re all caught up—until next time.