From complexity to clarity: GST Council ushers in a new era of tax reforms

The shift from four slabs to a leaner two-tier structure 5% for merit goods and 18% for standard goods, with 40% for sin and luxury items is the most far-reaching change since GST's inception

The government’s announcement of GST reforms at the 56th Council meeting — anchored around rate rationalisation, resolution of classification disputes, correction of inverted duty structures, structural changes, and trade facilitation —marks a bold reset of India’s indirect tax regime. By phasing out anomalies and aligning rates with economic priorities, the Council has revived the original promise of GST with renewed clarity and conviction. This next generation of reforms is poised to create a simpler, more transparent, and growth- oriented tax system. 

A defining feature of these reforms is the consensus-building that made them possible. Indirect taxation