The 56th meeting of the GST Council will be held on September 3 and 4, 2025, at New Delhi, as Centre pushes for GST reforms, which were announced by Prime Minister Narendra Modi on Independence Day. The Government of India has proposed to move from 4-slab GST structure to two slabs, by removing the 12% and 28% tax slabs completely, and keeping only two tax structures – 5% and 18%.
PM Narendra Modi made the first announcement about the reforms calling it a “Diwali gift” for the people of the country. He said the reforms will benefit the common man. After the announcement, the Group of Ministers (GoM) proposed its suggestions, which will be finalised in the GST council meeting.
Big decision on 2-slab reforms
The high-powered GST Council, chaired by Finance Minister Nirmala Sitharaman, will meet on September 3-4 to discuss on reduction of four-slab taxation and moving to a two-slab structure. In an office memorandum, the GST Council Secretariat said the two-day meeting will be held in New Delhi.
The council comprises finance ministers of all states and UTs. These all will deliberate on the recommendations by the three GoMs on rate rationalisation, compensation cess and health and life insurance.
The GoM, comprising state ministers, met earlier this week and 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 per cent, classifying goods and services as ‘merit’ and ‘standard’, reported PTI.
However, there is a proposal to levy a special rate of 40 per cent on select few items like ultra-luxury cars and sin goods like tobacco and online gaming.