Goa, Aug. 16 -- The Central government is considering a major overhaul of the Goods and Services Tax (GST) structure, with plans to introduce just two primary slabs-5% and 18%-alongside a special 40% levy for luxury and "sin" goods, according to media reports. The revamped regime is expected to replace the current four-tier system by Diwali this year.

At present, essential food items are exempt from GST, while daily-use goods are taxed at 5%, standard goods at 12%, electronics and services at 18%, and luxury items at 28%. The proposed shift to a two-slab model aims to simplify compliance and streamline the tax structure.

The announcement follows Prime Minister Narendra Modi's Independence Day address, where he promised "next generation ...