focus on a simpler two-rate structure; consumer durables may turn cheaper

Why it matters: India’s multi-rate GST has long balanced revenue needs with affordability. A cleaner structure aims to cut classification disputes, lower compliance costs, and make pricing more transparent for consumers.
What’s changing: The topmost slab is slated for pruning, with many goods moving into a lower bracket. Demerit goods will continue to sit in a special higher category. The thrust is to keep essentials affordable while limiting cascading impacts on input tax credits.
Impact on consumers & industry:

• Consumers: Selected white goods and packaged products could see price reductions if tax cuts are fully passed through.

• Businesses: Fewer rate bands simplify invoicing, ERP setups, and vendor negotiations. Working-capital frictions tied to credit mismatches may ease.
  Revenue trade-off: In the near term, the exchequer could face a modest shortfall. Policymakers are betting that stronger demand and better compliance will broaden the base and partly offset the gap over time.
  Execution challenges: Smooth HSN reclassification, timely notifications, and GSTN/ERP updates are crucial. Retailers must re-label inventory correctly to avoid consumer confusion.
  What’s next: Upcoming GST Council meetings will finalise the fine print, transition rules, and grievance redressal mechanisms to ensure a clean switchover.