India simplifies GST to two tax slabs, aiming to boost consumption and GDP by reducing costs.

India plans to simplify its Goods and Services Tax (GST) structure from four to two tax slabs, reducing rates from 12% to 5% and from 28% to 18%. This move aims to lower costs for consumers and businesses, potentially boosting consumption by Rs 1 lakh crore and GDP by 0.2-0.3%. The changes are expected to make essential goods and durable items more affordable, benefiting 11.4% of India's private consumption. The reforms could also help mitigate the impact of US tariffs on India's economy.