Overview

• Ministers convene in New Delhi to consider collapsing the GST into two core slabs of 5% and 18% with a special 40% band for select luxury and sin goods.
• The agenda includes refitting roughly 150–175 items, shifting most goods now at 12% to 5% and many from 28% to 18%, covering staples, FMCG, consumer electronics, cement, small cars and two-wheelers.
• Targeted reliefs under discussion include zero GST on individual health and term life insurance and administrative changes such as pre-filled returns and automated refunds.
• Key unresolved issues include the tax treatment of electric vehicles—where the Centre favors 5% and a GoM has proposed higher tiers—and the replacement or redesign of the expiring compensation-cess framework.
• Opposition-ruled states warn of sizable revenue shortfalls and seek a protection mechanism, while markets have rallied in anticipation of cuts benefiting consumer and auto sectors.