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**Headline: GST Council Considers Sweeping Rate Cuts, Aiming for Simplified Tax Structure**

**New Delhi:** The Goods and Services Tax (GST) Council commenced a crucial two-day meeting on September 3rd, focused on a major overhaul of the GST rate structure. Convened ahead of schedule, the council is deliberating significant reforms aimed at simplifying the current four-tiered system.

A key proposal under consideration involves shifting approximately 99% of goods currently taxed at 12% to the lower 5% slab. Furthermore, the council is examining moving roughly 90% of items presently in the 28% bracket down to the 18% slab.

The potential changes, driven by the government’s commitment to boosting domestic consumption and industry, could result in reduced prices for a wide range of goods. Items that could see price drops if moved from the 12% to 5% bracket include processed food products (packaged sweets, snacks, sauces, etc.), household goods (washing powder, brushes, fans), furniture, plastic products, and electrical accessories.

Similarly, shifting goods from the 28% to 18% slab could lower the prices of consumer electronics (TVs, refrigerators, air conditioners, washing machines), mid-segment two-wheelers and cars, cosmetics and perfumes, and construction materials like paints and cement.

However, reports suggest that certain items deemed harmful, such as alcohol, and luxury goods could see increased taxes to offset revenue losses from the rate reductions.

Experts believe the proposed changes would benefit consumers through lower prices, stimulate sales for industries, and provide a boost to domestic manufacturing. This move aligns with global trends, as seen in the U.S., where similar measures are being taken to safeguard domestic industries amid trade tensions.

The final decisions made during the meeting are expected to reflect the government’s commitment to economic growth and job creation, as emphasized by Prime Minister Modi in recent addresses.

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