GST Reform | Centre Proposes Simplified Tax Structure | InFocus | UPSC | Drishti IAS

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In a significant move to streamline India's taxation system, the Centre has proposed a major overhaul of the Goods and Services Tax (GST) framework. The new structure aims to reduce the existing four-tier GST system to just two slabs: 5% and 18%, with a special 40% rate for luxury and sin goods. This reform is expected to make essential goods more affordable and simplify compliance for businesses. The proposal includes lowering GST on small cars from 28% to 18% and reducing insurance premiums from 18% to as low as 0%-5%. These changes are anticipated to boost consumer demand and stimulate economic growth. The government plans to implement these reforms by Diwali 2025, pending approval from the GST Council.miss out on this analysis, and watch till the end for practice questions to strengthen your understanding.

This development is crucial for UPSC aspirants, as it impacts the Indian economy, public finance, and governance—key areas in the General Studies syllabus. Understanding these reforms will aid in answering questions related to economic policies and their implications on society. Stay informed with Drishti IAS for comprehensive coverage and analysis of current affairs relevant to your examination.


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