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3h ago

CBIC Urges Caution as GST Council Sets Sept 3–4 Review of Two-Slab Overhaul

States now face revenue trade-offs as proposals move most items to 5% or 18% with a narrow high rate for sin goods.

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Bikes having a displacement of 350 cc and above may get hit with 40 per cent GST under new proposal
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Overview

  • The GST Council will convene on September 3–4 in New Delhi to consider the GoM’s rate rationalisation plan.
  • CBIC issued an advisory asking media and stakeholders to avoid premature GST rate speculation and to await official decisions after the meeting.
  • GoM convenor Samrat Choudhary said the panel backed a two-slab structure and favoured exempting health and life insurance premiums.
  • Published draft fitments suggest scrapping the 28% slab for many goods, with small cars and sub‑350cc two‑wheelers potentially shifting to 18% and larger motorcycles near 40%.
  • Auto buyers are deferring purchases ahead of possible cuts, and analysts estimate an annual revenue hit of about ₹1.66 lakh crore, heightening state concerns.