New Delhi, Aug 15 || The Finance Ministry on Friday put forth the proposal about a simplified, two-tier Goods and Services Tax (GST) system with a "standard" and "merit" slab, alongside special rates for select goods.
The proposal came after Prime Minister Narendra Modi said during his Independence Day address from the Red Fort that the next generation reforms in GST will be unveiled by Diwali, which will provide "substantial" tax relief to the common man and benefit small businesses.
The government has sent its proposal on GST rate rationalisation and reforms to the Group of Ministers (GoM) constituted by the GST Council to examine this issue.
Key areas identified for next-generation reforms include the rationalisation of tax rates to benefit all sections of society, especially the common man, women, students, middle class, and farmers.
Among the proposals is the reduction of taxes on common man items and aspirational goods. This would enhance affordability, boost consumption, and make essential and aspirational goods more accessible to a wider population.