GST Council Meeting Called On Sept. 3-4 Amid Centre's Two-Slab Reform Push

The 56th meeting of the GST Council will be held on Sept. 3-4 in New Delhi, according to an office memorandum issued on Friday. The meeting will come amid the Centre's big push to reform the indirect taxation regime's structure into two slabs, from four at present.

The GST Council will decide on the Group of Minister's proposal to retain only 5% and 18% slabs, which will result in the scrapping of the 12% and 28% slabs. Additionally, the GoM suggested an extra levy of 40% for select categories of luxury and sin goods.

“The GoM on rate rationalisation has recommended a two-slab GST structure. We will be submitting our recommendations to the GST Council,” said Samrat Choudhary, Bihar finance minister, who is also heading the GoM. His statement came on Thursday, at the conclusion of the crucial two-day meeting of the ministerial panel.

The GoM, according to sources, agreed that the existing 12% and 28% slabs will be scrapped under the new regime — a move that aligns with the long-standing goal of simplifying GST through rate rationalisation. "The objective is to move toward a simpler and more transparent GST regime while ensuring revenue protection for both Centre and states,” a senior official present in the discussions had told NDTV Profit.

India currently follows a four-slab GST system — 5%, 12%, 18%, and 28% — along with an additional cess on sin and luxury goods. The rationalisation effort aims to reduce classification disputes, simplify compliance, and boost overall tax efficiency.

The GST overhaul plan was first announced by Prime Minister Narendra Modi, during his Independence Day address. The reform is targeted to be implemented by the upcoming festive period of Diwali.