<h1>Central government proposes next-generation GST reform with simplified slabs mainly 5% and 18% and 40% on select items</h1> The central government announced a proposal for 'next-generation' GST reforms focused on structural reforms, rate rationalisation and ease of living, and seeks to build consensus with states in coming weeks under cooperative federalism. Three groups of ministers will deliberate on rate rationalisation, insurance taxation and compensation cess; the proposal would simplify slabs to primarily 5% and 18%, with a proposed special 40% rate on 5-7 items (including sin goods). The plan aims to replace the current 5%, 12%, 18% and 28% structure and adjust cess arrangements pending state agreement.