GST Shake-Up Soon: Bihar Deputy CM-Led GoM To Vet Centre’s Two-Slab Blueprint This Week 

A massive overhaul in India’s GST structure could be in sight, as the Group of Ministers (GoM) on rate rationalisation, now chaired by Bihar Deputy CM Samrat Choudhary, is set to meet later this week to review the Centre’s proposal based on three pillars — structural reforms, rate rationalisation, and ease of living.

The 6-member state panel which is examining GST rate rationalisation includes Uttar Pradesh Finance Minister Suresh Kumar Khanna, Rajasthan Health Services Minister Gajendra Singh, Karnataka Revenue Minister Krishna Byre Gowda, West Bengal Finance Minister Chandrima Bhattacharya, and Kerala Finance Minister K.N. Balagopal.

What’s on the GoM Table?

The GoM is expected to take up the Centre’s comprehensive reforms proposal right from moving to a two-slab structure, reduction of taxes on common-use items and aspirational goods, correcting inverted duty structure, easing compliance, rejig in some services including insurance and the future of the compensation cess.

However, it could take the GoM a few meetings to arrive at final recommendations, which then will be taken up by the all-powerful GST Council in its next meeting, expected in late September or early October.

The Road So Far: A Recap

The GoM on GST rate rationalisation was originally constituted in September 2021, under the chairmanship of then Karnataka Chief Minister Basavaraj Bommai. Under his leadership, the panel submitted an interim report to the GST Council in June 2022, recommending changes in tax rates for select goods and services to streamline and rationalise the GST structure.

Following a change in government in Karnataka after the May 2024 Assembly elections, Krishna Byre Gowda took over as the state’s Revenue Minister. The panel was subsequently reconstituted in October 2024, with Uttar Pradesh Finance Minister Suresh Kumar Khanna named as the convenor.

In January 2024, after the formation of the JD(U)-BJP alliance in Bihar, the finance portfolio was handed over to Deputy Chief Minister Samrat Choudhary, replacing Vijay Kumar Chaudhary — thereby making him the new chair of the GoM.

Notably, In 2024, the GoM reviewed over 70–100 product categories but stopped short of recommending a full merger of slabs. While it did propose targeted changes — such as lowering GST on 20-litre water bottles, bicycles, and notebooks, and raising rates on high-end shoes and watches — the broader reform plan was not tabled before the GST Council. As of late 2024, only selective changes were adopted — including an 18% GST on used cars and revised rates on popcorn and ACC blocks.

What to Watch This Week

The key question is whether the Samrat Choudhary-led GoM will accelerate efforts toward a comprehensive restructuring of GST slabs, or once again opt for an incremental, item-by-item approach.

With political timelines tightening ahead of key state elections—and against the backdrop of shifting geopolitical dynamics—the Centre is keen to push ahead with long-pending tax reforms, adding pressure on the GoM to deliver. However, official sources have clarified that this effort is not a reaction to recent tariff moves or geopolitical developments.

“The Centre is looking at all ongoing issues holistically and aims to present a comprehensive package in the next GST Council meeting,” a senior official said.

“This is not linked to US tariffs or global geopolitical concerns. The GST rate rationalisation exercise has been in progress since 2022, and is essential—particularly as the compensation cess regime nears its end,” the official added.

With the government targeting a pre-Diwali rollout, this week’s GoM meeting could be pivotal. While past panels have hesitated to push bold reform, the new leadership — combined with a clear policy direction from North Block — might finally get India closer to a simpler, more efficient GST regime.