Government Proposes New GST Framework and Festive Tax Relief
Centre unveils plan for simplified GST structure and Diwali season tax reductions.
The Indian government has proposed a sweeping reform of the Goods and Services Tax (GST), aiming to streamline compliance and simplify India’s indirect tax system. The new proposal would center on an 18% general slab, with a 40% rate for luxury and sin goods, eliminating several minor tax slabs and reducing complexity for businesses.
In a bid to stimulate the economy and ease household budgets ahead of Diwali, the government is also considering temporary GST reductions on products like small cars and insurance premiums. If implemented, these reforms could make compliance easier for businesses and boost consumer spending.
Still, economists emphasize the need for careful calibration to ensure fiscal health while delivering relief to Indian households and enterprises
