Union Finance Minister Nirmala Sitharaman on Wednesday chaired the 56th GST Council Meeting to discuss the Centre’s proposal to reduce GST on daily-use items to give a much-needed relief to the common man ahead of the festive season.
The two-day meeting of the GST Council, which is being held on September 3-4, brings together finance ministers from all states to discuss the next-generation GST reforms.
The key proposal that the council will contemplate includes the removal of 28 per cent and 12 per cent slabs. The Centre has proposed moving goods and services under these two slabs to 5 per cent and 18 per cent categories.
A special 40 per cent rate has also been proposed on sin goods, including tobacco products and luxury items.
Ahead of the meeting, Sitharaman on Tuesday said the proposed GST reforms would ensure transparency and boost small firms and businesses by reducing compliance burden.
“The roll-out of the reforms will absolutely set the country on a path towards an open and transparent economy by creating fresh avenues for small businesses,” she said.
Referring to Prime Minister Narendra Modi’s announcement on formation of a task-force for next generation reforms, Sitharaman stated that the planned roll-out of the reforms will set the economy absolutely open and transparent in the coming months.
During his Independence Day 2025 speech, Prime Minister Modi had announced that his government will bring new GST reforms by Diwali this year.
He also promised GST on daily-use items will be reduced for all Indians.
“The government will bring Next Generation GST reforms, which will bring down tax burden on the common man. It will be a Diwali gift for you. The new GST reforms will bring down the taxes for daily-use items for all Indians,” Modi had said.
As per reports, the government is planning to reduce the GST by at least 10 per cent on nearly 175 products, ranging from toothpaste, shampoo, talcum powder to hybrid cars and consumer electronics.