<h1>Government proposes simplifying GST to 5% and 18% slabs with 40% special rate for select demerit items</h1> A central government representative will address a Group of Ministers (GoM) on August 20-21 to present a proposal to rationalise GST rates into two primary slabs-5% and 18%-with a 40% special rate for a small number of demerit items, alongside related adjustments for health and life insurance and compensation cess considerations. The GoM deliberations could lead to referral of the proposal to the GST Council for decision. The reform aims to resolve duty inversion, reduce tax burdens for middle-income households, MSMEs and agriculture, and realign existing 5/12/18/28% slabs pending formal Council approval.