GST Council Meeting / Important meeting of GST Council today, these decisions may be approved!

GST Council Meeting: A two-day meeting of the GST Council is starting from today in New Delhi, which will end on 4 September 2025. The eyes of the whole country are fixed on this meeting, as there is a possibility of a massive change in the tax structure of GST. Experts believe that the government can take a historic decision to reduce the four tax slabs (5%, 12%, 18%, and 28%) to only two slabs (5% and 18%). If this happens, it will be the biggest reform since the implementation of GST in 2017. This will not only increase transparency in business, but common consumers can also get relief on many goods and services.

Plan to eliminate 12% and 28% slabs

Under the plan of the GST Council, the existing tax slabs of 12% and 28% can be abolished and only 5% and 18% slabs can be implemented. The purpose of this change is to make the tax system simpler and more transparent. The agenda of this meeting was mentioned in the circular issued by the ex-officio secretary of the GST Council last month. Also, according to the notice of the Revenue Secretary, discussions were also held on this issue between the officials of the states and the central government on September 2. This move is being considered important towards easing tax compliance and making the process smooth for traders.

40% sin tax for tobacco and cigarettes

Another important proposal in the meeting is to implement a separate tax slab of 40% for tobacco, cigarettes, gutkha and other harmful (demerit) products. This is being known as sin tax, which is aimed not only to raise revenue but also to control the consumption of these products. Additionally, luxury cars, high-end electronics and some special services can also be included in this category. The additional revenue generated from this slab can be used to strengthen social welfare schemes.

Impact on common people and businessmen

Finance and policy experts say that this change in GST slabs will boost consumption in the market. Due to the reduction in the number of tax slabs, traders will find it easier to comply, saving their time and cost. Also, consumers can get relief due to lower taxes on many essential goods and services. According to political analyst Ayush Nambiar, before the implementation of GST, India's tax system was complex and unorganized, with different rules of each state hindering business. GST connected the country as a unified market, and now this proposed change can prove to be another strong step in that direction.

Strength in GST collection

Along with the improvement in the GST structure, the revenue collection figures are also giving positive signs. GST collection in August 2025 stood at Rs 1.86 lakh crore, which is 6.5% more than last year. This figure shows that the country's tax system is constantly getting stronger and economic activities are also seeing a boom. This growth is a positive sign for the government, which may instill more confidence in implementing the GST reforms.