The government has announced a major GST rate cut, reducing taxes on 90% of taxable items in the 28% slab to 18%, aiming to boost consumer spending and ease inflationary pressure.

This historic decision was taken during the latest GST Council meeting, where members reviewed the existing tax structure and identified the need for rationalization.

The 28% GST slab, which previously included a wide range of goods from luxury items to some essential household products, has often been criticized for being too steep and discouraging consumer purchases. By bringing 90% of these items down to the 18% slab, the government hopes to make goods more affordable, encourage higher consumption, and ultimately drive economic growth.

Finance ministry officials highlighted that this move will benefit both consumers and manufacturers. Lower prices are expected to increase sales volumes, while industries could see improved demand. Analysts believe this step could also help control inflation, as reduced taxes will lower the final retail prices of many products.

The decision reflects the government’s broader aim of making the GST system simpler and fairer, while also ensuring that essential goods are taxed at lower rates. The changes are likely to come into effect soon after official notification, with businesses being advised to update their pricing and billing systems accordingly.