In a bold move to simplify India’s tax structure and ease the financial burden on consumers, the central government is planning to eliminate the 12% GST slab—a reform that could lead to significant price cuts on daily-use items. The plan, which aims to redistribute goods currently taxed at 12% into either the 5% or 18% brackets, covers a wide range of essentials such as toothpaste, vaccines, pressure cookers, washing machines, bicycles, footwear, and garments priced above ₹1,000.
While the overhaul mirrors recent income tax reforms in its effort to streamline the system, it could cost the Centre and states a combined ₹80,000 crore in revenue. To navigate this challenge and secure state cooperation—especially from opposition-ruled states—Union Home Minister Amit Shah will hold key discussions with state leaders.
If approved, consumers could soon see lower prices on items like stationery, ceramic tiles, kitchen appliances, agricultural tools, and more. The government’s ultimate goal: a simpler, citizen-friendly tax regime that boosts compliance and keeps essential goods more affordable.
