GST 2 Slab Structure Soon: All Eyes on Upcoming GST Council Meeting:

GST 2 Slab Structure Soon: All Eyes on Upcoming GST Council Meeting The Goods and Services Tax (GST) system of India, which has been in effect for eight years, is now getting a big change to make it easier to understand and use. The Group of Ministers (GoM) has agreed with the central government's plan to simplify the tax structure. Currently, there are four GST rates of 5%, 12%, 18% and 28%. As per the proposed changes, instead of these tax rates, there will now be just two main GST slab structures, 5% and 18%. Additionally, sin goods like tobacco and sugary drinks will be taxed at a higher rate of 40%. The goods that are currently taxed at 12% GST rates will be moved under the 5% GST rate category.

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In the new structure, the merit goods and services will be taxed at 5%, and the other standard items will be taxed at the 18% rate. Finance Minister Nirmala Sitharaman has highlighted how the simplified GST structure would help the farmers, middle class and small businesses, ensuring compliance. Everyone is waiting for the next meeting of the GST Council, where the proposed decision will be discussed by the GST Council Members. The meeting is expected to be scheduled in September 2025. If the decision gets approved in the GST council meeting, it could make the GST system easier and more simplified.