GST Slab : Two out of four GST slabs to be abolished; Big relief for common man
The goods and services tax system introduced for the general public is going to become simpler. Today, on August 21, 2025, a ministerial group meeting was held, in which the GST slabs have been reduced to two. This means that the 12 percent and 28 percent slabs will be abolished, while the 5 percent and 18 percent slabs will remain.
In this meeting, the finance ministers of the states supported reducing the existing four slabs to just two. Currently, the GST has four slabs: 5 percent, 12 percent, 18 percent, and 28 percent. During today's meeting, it was decided that the GST rates will be divided into only two slabs. Goods taxed at 12 percent will fall under the 5 percent slab, and goods taxed at 28 percent will be taxed at 18 percent.
This will simplify the tax system, benefiting both the general public and traders. Essential needs will be taxed at a rate of 5%, while some standard goods and services will be taxed at 18%. Additionally, a 40% slab has been set for valuable and harmful items.
Meanwhile, Finance Minister Nirmala Sitharaman also stated that "this new system will make the tax system simple and transparent. Moreover, it will reduce the tax rates on many goods, which will lower the prices of goods and benefit the common people."