Chief Minister of Gujarat meets PM 04 Sep, 2025 The Chief Minister of Gujarat, Shri Bhupendra Patel met Prime Minister, Shri Narendra Modi today in New Delhi
In a significant step toward simplifying India’s indirect tax regime, the Goods and Services Tax (GST) Council has approved a streamlined two-tier rate structure comprising 5% and 18% tax slabs. The decision was announced by Union Finance Minister Nirmala Sitharaman following the 53rd meeting of the GST Council held in New Delhi on Wednesday. “We've reduced the slabs,” Sitharaman said while briefing the media. “This is part of our ongoing effort to make GST more efficient, transparent, and taxpayer-friendly. The move will reduce complexity and improve compliance.” The new structure replaces the earlier multi-rate system that included 5%, 12%, 18%, and 28% slabs, which had been criticized by economists and businesses alike for its complexity. The Finance Minister indicated that the reform is aimed at rationalizing the tax burden on consumers while also boosting revenue through improved efficiency. The revised rates will be rolled out in a phased manner over the coming months, following consultations with stakeholders across sectors. Analysts say this simplification could help in reducing litigation and confusion around classification of goods and services under different slabs. The Council also discussed measures to further widen the tax base, increase compliance through digital tools, and address sector-specific concerns in light of current economic conditions. More details on the timeline for implementation and specific goods or services affected by the change are expected in an official notifica
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