<h1>GST Council approves two-tier 5% and 18% rates, exempts individual life and health insurance, eases compliance for MSMEs</h1> The GST Council, representing the central and state governments, approved comprehensive GST rate rationalisation and process reforms to simplify compliance and promote ease of doing business, particularly for small traders and MSMEs. Key legal changes include a two-tier rate structure of 5% and 18% effective September 22, and exemption of individual life insurance and health insurance policies from GST. The decision was taken by consensus among states and is intended to reduce tax burdens on consumers and specific sectors while streamlining procedures and strengthening the tax framework.