Major GST overhaul under consideration by council
The GST Council is gearing up to shake up India's tax system, with plans to scrap the 12% GST slab and cut rates on things like air conditioners.
There's also talk of making pure term insurance policies completely GST-free—down from the current 18%.
If these changes go through, everyday costs could drop a bit for a lot of people, especially the middle class.
States worried about revenue
Lower taxes sound great for shoppers, but states are worried about losing revenue they rely on from special "compensation cess" charges.
The Council now has to figure out how to make taxes simpler without hurting state budgets—possibly by keeping extra charges on products like tobacco.
This review is a big deal because it aims to make taxes fairer and more straightforward while still keeping government services running smoothly.