GST reforms
Simpler tax regime can spur economic growth
Updated At : 05:55 AM Aug 18, 2025 IST
The proposed new regime envisages lower tax rates and just two slabs (down from four) of 5 per cent and 18 per cent in a bid to bolster the economy and weather the tariff storm.
At the time of its rollout in July 2017, the Goods and Services Tax (GST) regime was touted as a major step towards economic integration as it replaced “a maze of indirect taxes” with a single, unified system. It was intended to make tax compliance easier and reduce costs for businesses through greater transparency and efficiency. However, the system has repeatedly drawn criticism over not being as ‘Good and Simple’ as it should be. Finally, the government has set the stage for reforms to improve the GST framework. The proposed new regime envisages lower tax rates and just two slabs (down from four) of 5 per cent and 18 per cent in a bid to bolster the economy and weather the tariff storm.
