Next-Gen GST step towards a single tax slab GST
GST
Dated:- 17-8-2025
PTI
New Delhi, Aug 17 (PTI) The proposed \u2018Next Gen GST\u2019 with sweeping reforms, lower tax rates, and just two slabs, aims to boost the economy amid tariff threats and set the stage for a single tax rate regime by the time India becomes a developed nation, government sources said.
\nThey said the proposed new GST regime, which slashes tax rates and assigns just two slabs of 5 per cent and 18 per cent, will boost the economy and also serve to mitigate tariff threats.
\nThe proposed two-slab regime, if approved by the GST Council, will replace the current four slabs in the Goods and Services Tax (GST) regime, doing away with the 12 per cent and 28 per cent slabs.
\nCalling it the “next Gen GST\u2019, a government official said, “It is a game changer reform. In the pantheon of economic reforms seen in India, it's right up there”. The officials spoke on the condition of anonymity.
\nGovernment sources said the new<\/p>\n
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\nOnce the Centre\u2019s proposal is accepted by the Group of Ministers (GoM) and is approved by the GST Council, it will end the flux of tax rates and ensure stability, the officials said.
\n“What we have suggested is a 'Next Gen GST' keeping the needs of the middle class, poor, farmers, and MSMEs in mind. Also, it has been ensured that tax on daily use items is low,” the official told PTI.
\n“Once the system is put in place and India becomes a developed nation, we can think about a single rate GST,” the official said, adding that a single rate structure is suitable for developed countries where income and spending capacities are uniform.
\n“The ultimate aim is to move to a single slab structure,\u201d the official said, adding that the time, however, is not right at present.
\nAccording to the official, during the process of overhaul, every due process is being followed. The Centre has taken the steering role but is protecting constitutional obligations by sharing it with th<\/p>\n