<h1>Conglomerate backs GST overhaul: two-slab rates 5% and 18%, 40% punitive rate, says reforms boost compliance and growth</h1> A major conglomerate publicly endorsed the government's proposed overhaul of the Goods and Services Tax, describing planned measures-consolidation into two main slabs (5% and 18%) plus a punitive 40% rate for certain luxury or sin goods and broad rate reductions-as likely to simplify the tax code, enhance compliance, and promote formalisation. The company argued reforms would lower compliance costs, improve competitiveness for enterprises including MSMEs, increase affordability of essentials, and stimulate consumption, investment and employment, while potentially reducing tariff-related risks and supporting broader economic policy goals.