56th meeting of the GST Council starts Today; New Tax Reforms may be introduced

The 56th meeting of the GST Council will begin today i.e. Wednesday, September 3 in New Delhi. In this meeting, Goods and Services Tax (GST) rates will be discussed under the chairmanship of Finance Minister Nirmala Sitharaman.

On 15th August 2025, PM Modi had announced that Indians will get Diwali Gift this year. He announced to make tax structure better.

The central government is planning to simplify the existing tax structure by introducing two slabs of 5% and 18%. Luxury items may come under the 40% bracket. Currently, there are 4 slabs of GST- 5%, 12%, 18%, and 28%.

The central government may implement the new GST rates from September 22. The government is planning to boost demand and sales during Navratri and festive season. The new GST rates are expected to reduce the prices of consumer goods which may boost shopping during the festive season.

CNBC has reported that the government is appealing to the GST Council to approve the changes in rates with immediate effect. As per various reports, it has been noticed that several sectors are going through slow growth. The Government wants to improve the growth of these sectors also via Tax simplification.

Last week, the Group of Ministers (GoM) had accepted the central government’s proposal of two slabs. Bihar Deputy Chief Minister Samrat Choudhary had said on August 21 that the group has approved the proposal of a structure of 5% and 18%, removing the existing rates of 12% and 28%.

Tax on following items may reduce from 12% to 5%

As per reports, items like dry fruits, branded namkeen, tooth powder, toothpaste, soap, hair oil, common antibiotics, painkiller medicines, processed food, snacks, frozen vegetables, condensed milk, some mobiles, some computers, sewing machines, pressure cookers, geysers will become cheaper.

Apart from these, non-electric water filters, electric irons, vacuum cleaners, readymade clothes above Rs 1,000, shoes in the Rs 500-1,000 range, most vaccines, HIV/TB diagnostic kits, bicycles and utensils will also be taxed at a lower rate.

Products like geometry boxes, maps, globes, glazed tiles, pre-fabricated buildings, vending machines, public transport vehicles, agricultural machinery, solar water heaters also fall in the 12% tax slab. After the approval of two slabs, these will be taxed at 5%.

Tax on following items may decrease from 28% to 18%:

Cement, beauty products, chocolate, ready-mix concrete, TV, refrigerator, washing machine, AC, dishwasher, private plane, protein concentrate, sugar syrup, coffee concentrate, plastic products, rubber tyres, aluminium foil, tempered glass, printer, razor, manicure kit, dental floss.