<h1>Government to Simplify GST Rates to 5%, 18%, and 40% for Luxury Goods Under New Tax Plan</h1> The central government plans to simplify the Goods and Services Tax (GST) structure by introducing two main tax rates of 5% and 18%, replacing the current multiple slabs. Most items currently taxed at 12% will shift to 5%, and those at 28% will largely move to 18%. A special 40% tax rate will apply to seven specific luxury and sin goods, including tobacco, maintaining the existing overall tax burden on these items. This revamp aims to boost consumption and offset potential revenue losses. Certain sectors, such as labor-intensive and export-oriented industries like diamonds and precious stones, will retain their current tax rates. The new GST framework is expected to be implemented by Diwali after approval from the GST Council.