GST overhaul: 12% and 28% slabs to be scrapped
Big changes are coming to India's GST system later this year. The government is looking to make taxes simpler, especially with worries about the economy slowing down.
A special task force, announced by PM Modi, is guiding broader economic reforms, while the GST overhaul is being handled by Groups of Ministers and the GST Council.
Ministers to review proposals soon
The plan? Scrap the 12% and 28% tax slabs, keep just 5% and 18%, and add a new 40% rate for select items.
Most things taxed at 12% will drop to 5%, while a few will move up to 18%.
Petrol, diesel, and liquor still won't be part of GST.
The goal is to ease the load on farmers, small businesses (MSMEs), and the middle class—so everyday spending feels a bit lighter.
Ministers will review these proposals soon, with final approval expected by Diwali this year.