Assam Backs Major GST Reform: Two Slab Proposal Gains Support

Assam Chief Minister Himanta Biswa Sarma announced the state's support for the central government's proposal to simplify the Goods and Services Tax system by reducing the number of slabs to two, namely 5 percent and 18 percent. This announcement came during the 56th meeting of the GST Council.

The Council, led by Finance Minister Nirmala Sitharaman, is focused on introducing 'next-gen GST' reforms. These reforms aim to lower tax rates on mass consumption items, correct duty inversion in sectors such as textiles, and ease the compliance burden for micro, small, and medium enterprises (MSMEs).

Prime Minister Narendra Modi had earlier detailed this GST reform plan during his Independence Day speech, and the central government subsequently outlined the blueprint to various state Group of Ministers for evaluation. Discussions will continue on the proposal to remove the 12 percent and 28 percent slabs completely and introduce a special 40 percent tax on select luxury items.

(With inputs from agencies.)