New Delhi, Aug 16 (PTI) Describing the proposed GST tax reforms as ‘Next Gen GST’, senior government officials on Saturday said that the two-slab tax regime will eventually pave the way for a single sales/services tax rate, hopefully by 2047.

They said the proposed new GST regime, which slashes tax rates and assigns just two slabs of 5 per cent and 18 per cent, will boost the economy and also serve to mitigate tariff threats.

The proposed two-slab regime, if approved by the GST Council, will replace the current four slabs in the goods and services tax (GST) regime, doing away with the 12 per cent and 28 per cent slabs. PTI VJ DRR

GST rate rationalisation proposes a two slab regime as a transitional step toward a unified single tax, pending council approval. Proposed 'Next Gen GST' reforms envisage a simplified two slab goods and services tax regime replacing the current four slabs, lowering certain rates and reducing exposure to tariff pressures, with implementation conditional on GST Council approval and intended as a transitional step toward a single unified tax rate.