The Goods and Services Tax (GST) Council, chaired by Finance Minister Nirmala Sitharaman, is expected to introduce revised GST rate slabs around September 22, according to government sources cited by NDTV Profit. The rollout is likely to align with the Navratri celebrations.
Ahead of this, the GST Council is scheduled to convene in New Delhi on September 3-4 to discuss the Centre’s proposal for a simplified two-rate GST structure, 5% and 18%. The report suggests that notifications regarding the new rates may be released within five to seven days following the Council’s decision.
Earlier this week, the Group of Ministers (GoM) on rate rationalisation, compensation cess, and insurance reached a consensus in principle on the Centre’s proposal for a dual-rate GST system.
Under the proposed reforms, the current four-tier GST structure of 5%, 12%, 18%, and 28% would be replaced by a two-slab model. Goods and services would be grouped into two main categories: ‘merit’ (5%) and ‘standard’ (18%). A higher 40% rate would continue to apply to select luxury and sin goods, such as ultra-premium cars. Meanwhile, certain labour-intensive goods would retain concessional rates, such as 0.1%, 0.3%, or 0.5%—to support job-generating sectors, as per the report.
Prime Minister Narendra Modi, during his Independence Day address in 2025, had introduced the reforms as ‘GST 2.0’. He described GST as one of the most impactful reforms since its 2017 launch and highlighted the need for rate rationalisation to benefit the common man, farmers, the middle class, and micro, small and medium enterprises (MSMEs).
Finance Minister Sitharaman also emphasized that the updated GST structure aims to foster self-reliance and strengthen the manufacturing and MSME sectors.
Addressing the GoMs on rate rationalisation, insurance taxation, and compensation cess last week, Sitharaman noted that the Centre’s proposal reflects a broader vision to implement the next phase of GST reforms as part of India’s path toward becoming an Atmanirbhar Bharat (self-reliant India).
