<h1>Government pushes next generation GST draft proposing two main rates (5% and 18%) and 40% demerit levy</h1> The opposition party claims vindication for earlier criticism of the original GST as 'flawed' and alleges the economy never recovered from that reform and a prior demonetisation, calling for a single tax. The head of government has circulated a draft of next-generation GST reforms to states and seeks their cooperation to implement changes before Diwali. Proposed amendments would replace current multiple slabs with two primary rates (5% and 18%) plus a 40% top bracket for certain demerit goods, and are subject to GST Council approval; they aim to prevent input tax credit accumulation and reduce demands for future tinkering.