<h1>Central Government Proposes Simplified GST with 5%, 18%, and 40% Slabs to Boost Economy and Curb Evasion</h1> The central government has proposed a simplified Goods and Services Tax (GST) structure with two main slabs of 5% and 18%, replacing the current 12% and 28% rates, along with a special 40% tax on select luxury and demerit goods, including tobacco and online gaming. The proposal aims to shift most items from the 12% slab to 5% and from 28% to 18%, benefiting sectors like textiles, agriculture, and health. The changes are intended to boost consumption and offset potential revenue losses, with implementation expected by the early third quarter of the year. The move also addresses issues of tax evasion linked to multiple GST rates and coincides with the end of the compensation cess period. High export-oriented sectors will maintain existing rates, and the maximum allowable GST rate remains capped at 40%. The proposal awaits discussion and approval by the GST Council.