India tax system

NEW DELHI, September 3, 2025 — In a landmark move to simplify India’s indirect tax framework, the Goods and Services Tax (GST) Council, chaired by Finance Minister Nirmala Sitharaman, approved a sweeping reform on Wednesday that will replace the existing four-tier GST structure with a streamlined two-slab system.The new regime, set to take effect on September 22, introduces two primary slabs 5% and 18% while reserving a special 40% rate for luxury and sin goods such as premium vehicles, tobacco, pan masala, and online gaming. Officials estimate that the rationalisation will result in a revenue loss exceeding ₹47,000 crore, but…