GST Council Clears Sweeping Reforms In A Single Day, Slabs Cut To Two

In a landmark decision, the GST Council, chaired by Finance Minister Nirmala Sitharaman, approved sweeping reforms in just one day instead of the expected two. The council has simplified India’s tax structure by reducing the earlier four slabs of 5%, 12%, 18%, and 28% into just two – 5% and 18%. There will also be a nil slab for essentials and a 40% slab for sin and luxury goods. Insurance premiums, life-saving drugs, Indian breads, and milk products will now be exempt from GST, while common household items fall under 5%. High-end goods and vehicles attract 18% or 40%. The government expects short-term revenue loss, but higher consumption could boost long-term growth.