Overview

• The 56th GST Council began its two‑day meeting in New Delhi to weigh a shift to 5% and 18% slabs, with a special ~40% rate for select luxury and sin goods.
• Proposals on the table move most items now at 12% to 5% and many at 28% to 18%, with estimates of roughly 150–175 products seeing cuts across food, textiles and consumer electronics.
• Opposition‑ruled states warn of sizeable revenue losses—figures cited up to about ₹2 lakh crore—and seek a clear, time‑bound compensation mechanism or earmarked levy.
• EV taxation is a flashpoint, with the Centre reported to favor a 5% GST to spur adoption while a GoM has recommended higher rates for pricier models.
• The package also considers exempting individual health and life insurance premiums and rolling out compliance reforms such as automated, risk‑based refunds and pre‑filled returns, with timelines dependent on Council consensus.