<h1>Finance Ministry Proposes Simplified 2-Slab GST System to Ease Tax Burden on Consumers and Small Industries</h1> The finance ministry has proposed to the Group of Ministers a simplified Goods and Services Tax (GST) structure consisting of two slabs-standard and merit-with special rates for select items, replacing the current four-tier system of 5%, 12%, 18%, and 28%. This proposal aims to reduce the tax burden on common and aspirational goods, benefiting small industries and consumers. The reforms focus on structural changes, rate rationalization, and improving ease of living. The GST Council is scheduled to review the proposal in September. The elimination of the compensation cess has created fiscal space, allowing for greater flexibility in aligning GST rates to ensure long-term sustainability. Implementation of these reforms is targeted by the upcoming Diwali festival.