<h1>Markets surge as government proposes two-tier GST rates (5% and 18%) plus 40% special rate on select items</h1> Stock markets rose sharply after the government signalled major GST law reform, proposing a two-tier rate structure (5% and 18%) with a 40% special rate on select items and removal of current 12% and 28% slabs; the proposal will be considered by a state ministerial panel in a forthcoming meeting. A sovereign credit-rating upgrade by a global agency and heavy buying in auto and consumer-durables stocks fueled gains, while some large-cap firms fell and foreign institutional investors were net sellers recently. The developments drove benchmark indices higher and heightened sector-specific volatility ahead of formal decisions.