- The Group of Ministers on GST overhaul will meet in New Delhi for two days
- The Centre proposes a two-slab GST system of 5% and 18% plus a 40% rate for demerit goods
- The GoM will discuss lowering GST on health and life insurance premiums from 18% to 5% or nil
GST 2.0: A two-day meeting of the Group of Ministers on Goods and Services Tax overhaul will soon begin in New Delhi, with Union Finance Minister Nirmala Sitharaman set to address the panel at 2 p.m.
The meeting marks the Centre's formal pitch for a sweeping reform of the GST structure, proposing a simplified two-slab system of 5% and 18%, along with a special 40% rate for select demerit goods such as pan masala, tobacco, and online gaming.
The GoM led by Bihar Deputy Chief Minister Samrat Choudhary, will deliberate on key issues, including the tax treatment of health and life insurance premiums—where the Centre has suggested reducing GST from 18% to 5% or even nil—and the future of compensation cess, which is nearing the end of its levy period.
The GoM's recommendations will be placed before the GST council chaired by FM Sitharaman, in its meeting. Minister of State for Finance Pankaj Chaudhary is heading the GoM on compensation cess.
The reforms, dubbed GST 2.0, are part of the Centre's broader push for structural simplification and compliance ease, and were hinted at by Prime Minister Narendra Modi in his Independence Day address as a potential Diwali gift for citizens.
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