India's GST Revolution: A Simpler, Fairer Tax System

NEW DELHI: In a landmark move to simplify the tax system, the Indian government has unveiled a comprehensive revamp of the Goods and Services Tax (GST), proposing two main slabs of 5% for common use items and 18% for other goods. This significant reform aims to make life easier for both citizens and businesses by eliminating the current 12% and 28% slabs.

What's Changing in GST 2.0?

Food, medicines, and educational products will enjoy lower taxes under the new regime, while luxury items and sin goods will face higher levies. The proposal also includes a major cut in GST on health and term insurance, benefiting millions of policyholders.

Focus on Key Sectors

Special attention has been given to sectors like automobiles, health, and renewable energy, with the aim of fostering growth and innovation. The reform is expected to end classification disputes and reduce the tax burden on the middle class and farmers.