Breaking News: GST Simplified: Major Restructuring Brings Relief for Middle Class | ABP NEWS

In a major overhaul, the GST Council has approved a simplified tax structure by reducing the number of tax slabs from four to two — 5% and 18%. The earlier 12% and 28% slabs have been scrapped to ease compliance and boost consumption. Essential goods such as bread, paneer, milk powder, and educational materials like pencils and notebooks will either fall under the 5% slab or be exempt altogether. Life-saving medicines and personal health insurance are also GST-free. Common household items like soaps, toothbrushes, and bicycles will now attract only 5% GST. On the other hand, luxury and harmful products have been hit with higher taxes. Cold drinks, tobacco, pan masala, pistols, luxury cars, and coal will attract a steep 40% GST. Motorcycles above 350cc and private jets will also become more expensive. Prime Minister Modi called this a fulfillment of his promise for GST reform, aimed at helping common citizens, small traders, and the middle class. While Home Minister Amit Shah praised the move as "historic," Congress leader P. Chidambaram criticized the delay, stating it should have happened years ago. The simplified structure is expected to ease business processes and stimulate economic growth through increased consumption.