New Delhi, Sept 4: Prime Minister Narendra Modi welcomed the GST Council’s decision to roll out a simplified two-tier structure from September 22, calling it a step towards “next-generation reforms.” He said the changes will benefit farmers, MSMEs, middle class, women and youth.

Finance Minister Nirmala Sitharaman announced the merger of 12% and 18% slabs, moving most items to 5% or 18%. Daily-use goods like soap, shampoo, toothpaste, kitchenware and bicycles will now attract 5% GST, while food items like parathas and school supplies will be tax-free. A special 40% slab will apply only to luxury cars, tobacco and cigarettes.