The government has unveiled plans to simplify the Goods and Services Tax system into just two slabs of 5% and 18%, with a special 40% rate for luxury and sin goods. Senior officials called the reforms a “game changer” that could eventually lead to a single tax rate by 2047. Prime Minister Narendra Modi, in his Independence Day speech, described the move as a “double Diwali gift” for citizens. The GST Council is set to review the proposal in September.
