Srinagar, Sept. 3 -- The Goods and Services Tax (GST) Council on Wednesday approved a set of sweeping changes in the indirect tax regime, exempting individual life and health insurance policies, cutting rates on a wide basket of goods and services, and pruning the current four-tier structure to two principal slabs.

The decisions, taken at the 56th meeting of the Council, mark the most extensive reform since GST was rolled out in July 2017. The new framework will have a standard rate of 18 per cent and a merit rate of 5 per cent, with a 40 per cent de-merit rate retained for a narrow set of items. Officials said the move was aimed at simplifying the tax architecture and easing compliance.

Prime Minister Narendra Modi, who had first flagg...