In a historic move to simplify India’s taxation system, the GST Council has decided to abolish the 12% and 28% tax slabs. From now on, GST will have only two rates – 5% and 18%. This new structure will come into effect from 22nd September.
🎯 Key Changes
- ✅ 12% and 28% GST slabs abolished
- ✅ Only 5% and 18% slabs remain
- ✅ Effective from 22nd September
📊 Why This Change?
For years, businesses and industry experts have demanded a simpler GST structure.
- Multiple slabs = complexity and confusion
- Fewer slabs = easier compliance and transparency
With just two tax rates, both businesses and consumers will find GST much easier to understand and manage.
💡 Who Benefits from This Reform?
- Consumers – Essential goods and services will become more affordable.
- Businesses & Traders – No confusion with multiple tax brackets.
- MSMEs & Startups – Easier invoicing, accounting, and compliance will save time and cost.
- Economy – A transparent and simplified tax system will encourage growth and stability.
📌 Effective from 22nd September
The government believes this reform will strengthen the economy and further enhance India’s Ease of Doing Business ranking.
✅ Conclusion
The GST Council’s decision to reduce the tax structure to just two slabs (5% & 18%) is a landmark step towards simplification.
- Fewer slabs → Simpler GST system
- Easier compliance → Cheaper goods and services for citizens
- Greater transparency → Stronger economy
👉 At Rohit Singhal Group, we believe this reform will boost India’s economic progress and support the vision of an Atmanirbhar Bharat.
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