GST Reforms: Rollout Of New Tax Rates Likely Around September 22—Profit Exclusive

GST Reforms: The Goods and Services tax Council, headed by finance minister Nirmala Sitharaman, will rollout the new GST tax slabs by around Sept 22 to boost India's festive demand, government sources told NDTV Profit. The implementation of the new GST tax rates will likely be around Sept. 22, expected to coincide with the Navratri celebrations.

The all-powerful GST Council will meet on Sept 3–4 in the national capital to deliberate on the simplified two-structure GST tax slab of 5% and 18% proposed by the Centre. According to sources, the notifications will begin rolling out nearly five to seven days after the GST Council’s decision.

The council, comprising finance ministers of all states and UTs besides the Centre, will deliberate on the recommendations by the group of ministers on rate rationalisation, compensation cess and health and life insurance. The Group of Ministers (GoM) comprising state ministers met earlier this week and, in principle, agreed to the Centre's proposal for a two-slab GST.

According to the reform proposed by the Centre to the GoMs, Goods and Services Tax (GST) should be a two-rate structure of 5 and 18%, classifying goods and services as 'merit' and 'standard'. A special rate of 40% will be levied on select few items like ultra-luxury cars and sin goods. Meanwhile, some labour-intensive items will continue to enjoy concessional lower rates of 0.1%, 0.3%, or 0.5% to support employment-intensive sectors.

Currently, GST is a four-tier structure of 5, 12, 18 and 28%. PM Modi on Independence Day 2025, announced the next-generation GST reforms, dubbed GST 2.0, to rationalize the existing tax rates. Calling GST one of the most significant reforms since its introduction in 2017, PM Modi stressed the need for the upcoming next-generation changes to provide relief to the common man, farmers, the middle class, and MSMEs.