New Delhi, Sept. 3 -- The Goods and Services Tax (GST) Council on Wednesday approved a sweeping overhaul of the indirect tax system, collapsing the existing four-rate structure into just two slabs. The long-anticipated rationalisation-seen as a relief for the middle class-abolishes the 12% and 28% categories, leaving only the 5% and 18% slabs.

Products previously taxed at 12% and 28% will now be redistributed into the lower brackets, making a vast range of items more affordable.

The move is expected to ease household expenses, spur consumption and provide a timely lift to the economy.

The decision comes shortly after Prime Minister Narendra Modi, in his Independence Day address, had promised a "Diwali gift" in the form of a GST revamp....