New Delhi, Sept. 26 -- Rationalisation of the GST structure will provide further impetus to consumption growth, said the Ministry of Finance in its Monthly Economic Update.

The 56th meeting of the GST Council has brought in broadly a two-rate structure with a Standard Rate of 18 per cent, a Merit Rate of 5 per cent and a special de-merit rate or singood rate of 40 per cent for a select few goods and services (but inclusive of earlier compensation cess rate, hence with no increase in overall tax burden), with effect from 22nd September 2025.

The Finance Ministry, in its Monthly Economic Update, added, "The rationalisation of GST came in as the third leg of the tripod of tax reforms, following up on the corporate tax reductions and person...