India, Aug. 18 -- PM Narendra Modi's address on the 79th Independence Day served as the launch of the 'next-generation GST reforms'. Framed as a Diwali gift to the nation, the announcement signals a strategic shift in the government's approach to India's indirect tax framework. The central proposal involves a radical simplification of the tax structure, moving from a multi-slab system to a streamlined two-slab framework with rates of 5% and 18%. This overhaul is expected to eliminate the existing 12% and 28% slabs.

The history of India's indirect taxation system traces back to the Kelkar Task Force's recommendations in 2002. The initial implementation of the Goods and Services Tax on 1 July 2017 was a monumental legislative and administr...