Current Affairs - Economy - Discussion

The Centre has proposed a Two-Slab GST structure as part of its next-generation tax reform. This system introduces two main slabs—5% and 18%—along with a 40% levy on sin goods like tobacco and pan masala. The 5% slab will include daily-use and common goods, while the 18% slab will cover aspirational and white goods, such as refrigerators and televisions, that currently fall under the 28% category. Essential food items remain exempt, ensuring relief for households. The overhaul is aimed at simplifying the indirect tax system, resolving disputes, correcting inverted duty structures, reducing compliance burdens, and boosting overall consumption and GDP growth.