Two-Slab GST: A New Dawn in Tax Reform

The finance ministry on Friday unveiled a proposal for a two-slab GST rate structure to the Group of Ministers (GoM), accompanied by special rates for select items.

Prime Minister Narendra Modi, during the Independence Day celebrations, announced comprehensive GST reforms aimed at significantly reducing tax burdens, particularly benefitting small industries, with implementation promised by Diwali.

Following the announcement, the finance ministry highlighted that the Centre's proposal, shared with the GoM, is built on structural reforms, rate rationalisation, and ease of living. The shift towards a simpler tax system would involve transitioning to a two-slab structure, accompanied by special rates for select goods. The GST Council, led by Finance Minister Nirmala Sitharaman, is set to deliberate on these proposals in a meeting slated for September.

(With inputs from agencies.)