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Aug 15, 2025 6:06 PM - Connect Newsroom

Government's big GST plan, Centre proposes to remove 12% and 28% slabs

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The Prime Minister said that the new reforms are part of the Centre's Diwali gift.(Photo: Facebook/Narendra Modi)

Prime Minister Narendra Modi announced on Independence Day to reduce GST slabs from 4 to 2 by Diwali and launch a new scheme for 3.5 crore jobs. Currently, there are 4 slabs of GST in India of 5 percent, 12 percent, 18 percent and 28 percent. The Centre has now proposed to reduce it to only 5 and 18 percent slabs.

This change is expected to bring big relief to the people. The Prime Minister said that the new reforms are part of the Centre's Diwali gift. According to the report, about 90 percent of taxable items in India, which are currently in the highest GST bracket of 28 percent, are proposed to be converted to the 18 percent tax slab.

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