This Independence Day, from the Red Fort, Prime Minister Narendra Modi called for the next generation of the GST reform. His promise was simple yet transformative: fewer rates, simpler compliance, and a tax system that truly enables business rather than entangles it.

The vision is bold—moving from four major slabs to two basic rates (5% and 18%) and one special demerit rate of 40%—but the opportunity is even bigger. This is our chance to make the GST the gold standard of indirect taxation: simple, fair, comprehensive, and litigation-free.

As someone who has watched the GST evolve from its inception, I believe the moment has come to reset it on six foundational principles. Done right, this reform can not only ease doing business but also dramatically cut the crippling load of disputes clogging our tribunals and courts.

1. Two Basic Rates: Certainty Over Complexity

Multiple rates have been the single largest source of classification disputes. Moving to 5% and 18%, with a tightly ring-fenced 40% rate for luxury and sin goods, will end rate arbitrage and make compliance intuitive. The new schedule should be locked to detailed HSN codes, so there is no room for interpretational chaos. Publish an........

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