Bhubaneswar, Aug. 21 -- https://images.odishatv.in/uploadimage/library/16_9/16_9_0/GST_1745587679.jpg
In a major step towards simplifying India's tax regime, the Group of Ministers (GoM) on GST rate rationalisation has approved a plan to reduce the four-tier tax structure to just two slabs - 5% and 18%. This decision is being hailed as the beginning of GST 2.0, aimed at easing compliance for businesses and reducing the tax burden on households.
Currently, GST is levied at 5%, 12%, 18%, and 28%. Under the new system, the 12% and 28% slabs will be scrapped, while a 40% rate will remain for "sin goods" like tobacco and luxury items. Nearly 99% of goods taxed at 12% will now fall under the 5% slab, while 90% of items from the 28% slab will sh...