Current Affairs - Economy - Discussion

The GST Council has undertaken a major reform by reducing the number of slabs from four to two, fixing them at 5% and 18%. In addition, a new 40% slab has been introduced for sin goods such as tobacco, liquor, sugary drinks, and luxury items to discourage their consumption and increase revenue. Essential goods, along with healthcare and education related items, will now become more affordable under the 5% slab, while most durable goods will attract 18%. Coal has been shifted into the 18% category, making it costlier. This restructuring aims to simplify compliance, reduce confusion, ease consumer budgets, and boost demand across sectors.