GoM Endorses GST Reform: Proposal to Cut Slabs from 4 to 2 Moves Forward

The Group of Ministers (GoM) on GST rate rationalization has endorsed a proposal to reduce the number of GST slabs from four to two. The proposed structure would eliminate the 12% and 28% rates, retaining only 5% and 18% as the standard rates. A higher 40% rate is expected to be imposed on luxury and sin goods. This reform, which aims to simplify the indirect tax system and reduce the tax burden on consumers, has been welcomed by most states. The move is expected to benefit various sectors and make the tax regime more transparent and growth-oriented.