NEW DELHI: The Goods and Services Tax (GST) Council on Wednesday is likely to have approved key changes to tax rates on footwear and apparel, providing relief to consumers and the industry, sources told news agency PTI.As part of the changes, footwear and apparel priced up to Rs 2,500 are likely to be moved into the 5% slab, compared to the current structure where only items up to Rs 1,000 attract 5% GST while those above are levied at 12%.

The 56th GST Council meeting, chaired by finance minister Nirmala Sitharaman and attended by state finance ministers also may have decided to scrap the 12% and 28% slabs, shifting most items into the 5% and 18% categories, the agency added.The move aims to simplify the tax structure, ease compliance, lower costs for middle-income households, and boost demand in the footwear and apparel sector.Earlier, ahead of the crucial meeting of the GST Council, Sitharaman on Tuesday said the proposed rollout of next generation reforms in eight-year-old indirect tax will make an economy absolutely open and transparent and further lower the compliance burden, helping small businesses thrive.