India, Sept. 4 -- The Goods and Services Tax (GST) Council on Wednesday approved a new two-slab structure of 5% and 18%, bringing a major simplification to India's indirect tax system. The new rates will take effect from September 22, replacing the earlier four-tier structure of 5%, 12%, 18% and 28%.

After a day-long marathon meeting of the GST council in New Delhi, finance minister Nirmala Sitharaman said the reforms were carried out with a focus on the common man.

The finance minister said, "We have reduced the slabs, there shall be only two slabs, and we are also addressing issue of compensation cess, ease of living, simplifying registration, return filing, and refunds."

"Every tax on the common man's daily use items has gone throug...