The GST Council began talks today on a sweeping tax restructuring plan.
Proposals include merging four tax slabs into just two at 5% and 18%.
Over 400 items from essentials to electronics may see rate reductions.
Luxury goods and sin items could face a sharp 40% levy.
Automakers, FMCG, and consumer durables are expected to
benefit most.
Revenue loss is estimated at $21 billion, straining state finances.
Officials say simplification will reduce compliance and boost deman
d.
Analysts expect the move to revive spending in price-sensitive areas.
The outcome of the next two days of meetings will be crucial.
This reform could mark the biggest shift in GST since its lau
nch.