FinMin Proposes Two-Slab GST Structure, Special Rates on Select Goods

The finance ministry on Friday proposed a two-slab GST rate structure to the Group of Ministers (GoM), along with special rates for select goods.

The move follows Prime Minister Narendra Modi’s Independence Day announcement that GST reforms, aimed at substantially reducing the tax burden and benefiting small industries, will be rolled out by Diwali.

According to the ministry, the proposal is built on three pillars — structural reforms, rate rationalisation, and ease of living. The special rates are expected to target specific goods to boost affordability and streamline compliance.