<h1>Government Plans GST Rate Cut by Diwali, Simplifying Tax Slabs and Boosting MSMEs</h1> The government announced plans to reduce GST rates by Diwali, aiming to simplify the current four-tier tax structure into two slabs-standard and merit-with special rates for select items. This reform seeks to lower tax burdens on everyday goods, benefiting consumers and MSMEs, and to address issues like tax evasion, litigation, and the inverted duty structure. The proposal includes structural reforms to align input and output tax rates, resolve classification disputes, and enhance compliance through technology-driven measures such as pre-filled returns and automated refunds. The compensation cess has ended, allowing fiscal flexibility for rate rationalization. The reforms are subject to further deliberation by a group of ministers and the GST Council, with a focus on cooperative federalism and consensus among states. The government aims to implement these changes promptly to foster a simpler, more stable, and transparent GST regime that supports economic growth and ease of doing business.