<h1>Government Proposes Next Gen GST Reform with Two Main Tax Slabs and 40% Sin Goods Rate</h1> The government has proposed a 'Next Gen GST' reform to simplify the Goods and Services Tax regime by reducing the current four tax slabs to two: 5% and 18%, with a 40% rate for sin goods. This restructuring aims to lower tax rates on common-use items, thereby reducing prices and boosting consumption. The proposal, subject to approval by the Group of Ministers and the GST Council, seeks to ensure tax rate stability, prevent input tax credit accumulation, and support economic growth amid international tariff challenges. The reform prioritizes the interests of middle-class citizens, farmers, and MSMEs, and envisions a future transition to a single tax rate once India achieves developed nation status. The government has conducted extensive consultations to categorize goods appropriately, aiming for a balanced and sustainable tax framework.