Goa, Aug. 15 -- On Friday, the Finance Ministry proposed a simplified two-slab GST rate structure to the Group of Ministers (GoM), with special rates for select items. Prime Minister Narendra Modi, in his 79th Independence Day address, announced that the reforms, aimed at substantially reducing the tax burden and benefiting small industries, will be implemented by Diwali.

The ministry said the proposal focuses on three key pillars: structural reforms, rate rationalisation, and ease of living. It includes a reduction in taxes on everyday items and aspirational goods, enhancing affordability and boosting consumption.

Currently, GST has four slabs of 5%, 12%, 18%, and 28%. Under the new plan, the system would move towards a two-slab model:...