Which of the following statements is/are correct regarding the 'Next-Generation GST Reforms' announced in 2025?
1. The reforms propose replacing the existing four-tier GST structure with a two-tier core structure comprising 5% and 18% slabs.
2. A new unified 40% de-merit rate has been established specifically for essential agricultural inputs to correct the inverted duty structure.

Question

Accepted Answer

A. 1 only — Statement 1 is correct as the new structure eliminates the 12% and 28% slabs, leaving 5% and 18% as the core tiers. Statement 2 is incorrect because the 40% de-merit rate is established for luxury and sin goods, not for essential agricultural inputs.

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