🌐 Simplifying India’s GST Structure

India is moving towards a major tax reform—simplifying the GST structure.

When GST was first introduced, the vision was “One Nation, One Tax”. However, the current multiple slabs (0%, 5%, 12%, 18%, 28%) often created complexity and confusion.

Now, the government has proposed rationalization:

✅ A new slab below 1% for select items.

✅ 99% of goods from the 12% slab to move down to 5%.

✅ 95% of goods from the 28% slab to move down to 18%.

✅ Only two main slabs (5% and 18%) for most goods.

✅ Higher tax (40% + cess) for “sin goods” like tobacco.

Why does this matter?

Affordability: Common-use goods become cheaper, leaving more disposable income.

Equity: Reduces regressive burden on lower-income households.

MSME boost: Encourages compliance, reduces evasion.

Economic growth: Higher consumption leads to greater demand.

Global appeal: Makes India more attractive for FDI.

Yes, there are concerns about revenue losses (~₹1 lakh crore), and the willingness of states will be key in upcoming GST Council meetings. But this step has the potential to reshape India’s tax system for both fairness and growth.

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