New Delhi, Sept. 4 -- The GST Council's decision to streamline India's indirect tax regime is expected to reduce disputes over the classification of goods and services, offering relief to both industry and consumers.

The number of rate slabs has been cut from four to two (5% and 18%), with a 40% levy reserved for sin goods. While the lower rates will ease the burden on consumers, some experts Mint spoke with said the rate rationalisation will not eliminate classification disputes entirely.

Tax professionals and legal practitioners said removing goods and services tax (GST) slabs of 12% and 28% could curb litigation, which has historically arisen from ambiguous classifications between closely related goods and services. However, grey are...