Overview

• The Council will consider eliminating the 12% GST slab to cut rates on mid-tier consumer goods and high-end items like air conditioners.
• A proposal would zero-rate pure term life insurance, shifting it from the current 18% levy to reduce costs for policyholders.
• With the compensation cess expiring in March 2026, the panel aims to introduce a new levy on tobacco and other sin goods to secure state revenues.
• Officials are weighing targeted rate increases on certain business-used items now in the 12% bracket to balance overall fiscal impact.
• Reforms seek a streamlined, three-tier GST framework requiring fewer rate adjustments to deliver greater predictability for businesses and consumers.