New Delhi, Aug. 19 -- In his Independence Day speech, Prime Minister Narendra Modi announced a major revamp of the goods and services tax (GST) structure by Diwali. Towards this, the government has proposed scrapping the 12% and 28% GST slabs, among other reforms.

While this could address a long-pending demand for a simpler indirect tax structure, the jury is still out on whether the proposed changes will provide much-needed fillip to consumption. Mint explores the impact of the proposed GST restructuring.

The Centre's proposed indirect tax framework aims for a dramatic simplification for the first time since its launch in 2017. It includes collapsing the multi-slab GST system into two primary rates by moving items in the 28% slab large...