GST Council Meet Today: The GST (Goods and Services Tax) Council meeting will kick off today, 3rd September, at Vigyan Bhawan. The two-day meeting will discuss major tax changes. Industry experts are hoping for proposals that could make everyday essentials and electronic goods cheaper, while some luxury items may face higher taxes. BJP MP Praveen Khandelwal said, “Under the leadership of PM Narendra Modi, this is a major next-generation GST reform. Traders across the country are looking at the meeting. They are hopeful that after this meeting, in the GST reforms that will be announced, slabs will be reduced and several items will be shifted from higher slabs to lower ones so that not just traders but even common consumers will benefit.”
#WATCH | On 56th meeting of GST Council today and GST two-slab structure proposal, BJP MP Praveen Khandelwal says, “Under the leadership of PM Narendra Modi, this is a major next-generation GST reform. Traders across the country are looking at the meeting. They are hopeful that… pic.twitter.com/PUG5YWSkhv
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‘Next-Gen’ GST reform
The Centre has proposed a new GST reform- ‘Next-Gen’ GST reform. The reform aims to simplify the current four-tier tax structure by reducing it to just two slabs — 5% and 18%. This would remove the 12% and 28% brackets that were introduced when GST was launched in July 2017.
- Most goods in the 12% tax slab and many items in the 28% slab will move to lower rates, which could make several products cheaper.
- Over 99% of goods now taxed at 12%—such as ghee, nuts, packaged drinking water (20-litre cans), non-aerated beverages, namkeen, medicines, and medical devices—are likely to shift to the 5% slab.
- Common household products like pencils, bicycles, umbrellas, and hairpins may also move to the 5% category.
- Electronic appliances including some televisions, washing machines, and refrigerators, currently in the 28% slab, could shift to the 18% slab, reducing their prices.
It is the 56th meeting of the GST Council. Finance Minister Nirmala Sitharaman, along with 33 members, will hold the meeting.
