GST Council Meeting Today: The GST Council meeting is starting today. The eyes of the whole country are fixed on the two-day meeting of the GST Council starting from today in New Delhi. This meeting is considered special because there can be big changes in the tax structure of GST. The government can take a big decision to reduce four tax slabs to two. This is considered to be the biggest reform after the implementation of GST in 2017.
According to the plan of the GST Council, now only two tax slabs 5% and 18% will be applicable in the country. The existing 12% and 28% slabs can be abolished.
In a circular issued last month by the ex-officio secretary of the GST Council, the meeting on 3-4 September was mentioned. According to the notice of the Revenue Secretary, before this meeting, discussions were also held between the officials of the states and the central government on 2 September.
On one hand, there are preparations for a major reform in the GST structure. On the other hand, the revenue collection figures are also encouraging. In August 2025, the GST collection was Rs 1.86 lakh crore, which is 6.5% more than last year. This figure indicates that the tax system in the country is getting stronger and along with this, economic activities are also witnessing a boom.
Separate slab of 40% for products like tobacco, cigarettes
A special proposal in the GST council meeting is that an additional tax slab of 40% should be fixed separately for tobacco, cigarettes, gutkha and other demerit (harmful) products. This is being called sin tax, the purpose of which is not only to raise revenue but also to control the consumption of these products. Luxury cars, high-end electronics and some special services can also come under this category. The additional revenue generated from this can be used in social welfare schemes.
How will this change affect the common people
Finance and policy experts believe that this structural change in GST will boost consumption in the market. On one hand, it will be easier for the business class to comply with taxes. On the other hand, some products may also become cheaper for consumers. According to political analysts, before GST, India’s tax system was complex and scattered. Every state had different rules. This created obstacles in business. GST has worked to connect the entire country as a market. Now this change will be another strong step in that direction.
Earlier, the 54th GST Council meeting was scheduled to be held on September 9 in New Delhi, informed GST Council informed through a tweet. The meeting will be held under the chairmanship of Union Minister of Finance & Corporate Affairs, Nirmala Sitharaman. GST rate on the purchase of life and health insurance were proposed to be reduced or there are even speculations of abolishing it completely. 72% of the GST collected from life and health insurance goes to the accounts of the states, while 28% remains with the Centre. Changes in the GST slab and making it rational will also be discussed in the meeting.
Join our whatsapp group for Latest updates
Click Here for Chhattisgarh News
Click Here for Entertainment News