The 56th meeting of the GST Council begins today in New Delhi under the chairmanship of Finance Minister Nirmala Sitharaman. The two-day meeting is expected to finalize major reforms in the Goods and Services Tax (GST) structure.
At present, GST has four slabs – 5%, 12%, 18% and 28%. The government is proposing to simplify it to just two slabs – 5% and 18%, while luxury items may attract 40% tax.
The meeting will conclude on September 4, and decisions are likely to be announced soon after.
New Rates May Apply from September 22
If approved, the revised GST rates may come into effect from September 22, just before the festive season. The government hopes this reform will boost consumer demand and sales during Navratri and Diwali.
According to reports, the Centre has urged the GST Council to approve the changes at the earliest, while also addressing states’ concerns about possible revenue loss.
Approval from Group of Ministers
Last week, the Group of Ministers (GoM) cleared the proposal for a two-slab system. Bihar Deputy CM Samrat Chaudhary confirmed on August 21 that the group had approved the new 5% and 18% GST structure, removing the 12% and 28% slabs.
What Will Get Cheaper?
From 12% → 5%
- Dry fruits, branded namkeen, toothpaste, soap, hair oil
- Common antibiotics, painkillers, processed food, snacks
- Frozen vegetables, condensed milk
- Some mobiles, computers, sewing machines, geysers, pressure cookers
- Non-electric water filters, electric irons, vacuum cleaners
- Readymade clothes (above ₹1,000), shoes (₹500–₹1,000)
- Most vaccines, HIV/TB diagnostic kits, bicycles, utensils
- Geometry boxes, maps, globes, glazed tiles, vending machines, solar water heaters, agricultural machinery, public transport vehicles
From 28% → 18%
- Cement, beauty products, chocolates
- Ready-mix concrete
- TVs, refrigerators, washing machines, ACs, dishwashers
- Private planes
- Protein concentrate, sugar syrup, coffee concentrate
- Plastic goods, rubber tyres, aluminium foil, tempered glass
- Printers, razors, manicure kits, dental floss
PM’s Independence Day Announcement
Prime Minister Narendra Modi, in his Independence Day address, had promised “next-generation GST reforms”, calling it a Diwali gift for the people. He said the changes would reduce taxes on everyday items and make life easier for the common man.
If implemented, the new GST structure will simplify taxation, bring down prices of essentials, and potentially give a strong push to India’s consumption-driven economy during the festive season.