A Group of Ministers (GoM) overseeing India’s Goods and Services Tax (GST) reform has endorsed the Union government’s plan to simplify the levy by replacing the existing four-tier structure with two principal rates. GoM chair and Bihar Deputy Chief Minister Samrat Choudhary said the panel agreed to scrap the 12% and 28% slabs, retaining the 5% rate for essentials and broadening the 18% bracket to cover most other goods and services. The ministers also reached consensus on introducing a 40% ‘sin tax’ for products considered luxury or harmful—such as high-end cars, tobacco, alcohol and online gaming—while preserving the separate 0% rate for basic food items. State finance ministers from Punjab, West Bengal and Uttar Pradesh confirmed broad support, though some sought greater clarity on revenue implications. The GoM will submit its final recommendations ahead of the GST Council’s next meeting on 18–19 September, where Union Finance Minister Nirmala Sitharaman will seek formal approval. A shift to two slabs would mark the most significant overhaul of India’s indirect-tax regime since GST was launched in 2017, aiming to ease compliance for businesses and reduce classification disputes.