Particle.news
Download on the App Store
32 ARTICLES
·
last mo.

GST Council Sets Sept. 3–4 Delhi Meeting to Weigh Two-Slab GST Overhaul and 40% Sin Rate

States seek assured compensation ahead of any decision on rate cuts, including the fate of the compensation cess.

Image
Image
The Union finance minister is the chairperson of the GST Council, where states/UTs are represented by finance ministers.
Image

Overview

  • An official memorandum confirms the 56th GST Council meeting on September 3–4 in New Delhi, preceded by an officers’ meeting on September 2.
  • The rate-rationalisation GoM has sent recommendations to shift to two core rates of 5% and 18%, scrap the 12% and 28% slabs, and apply a special ~40% levy to a narrow set of sin and ultra‑luxury items such as high-end cars and tobacco.
  • The proposals also include exempting GST on individual health and life insurance premiums, pending Council approval.
  • Several states have asked for quantified revenue-loss estimates and firm compensation arrangements; some ministers flagged possible additional levies on sin goods to preserve current tax incidence.
  • The Centre is pushing for a swift decision so changes can be implemented before the festive season, with many items in the 12% slab likely moving to 5% and many in the 28% slab to 18%, and the compensation cess proposed to be removed.