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GST Council Sets Sept. 3–4 Meeting in Delhi to Decide Two-Slab Overhaul

State revenue safeguards and technical design choices such as any cess and input tax credit rules will shape who benefits from the proposed overhaul.

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Overview

  • An official notice confirms the 56th GST Council meeting on September 3–4 in New Delhi, with an officers’ meeting on September 2 to prepare the agenda.
  • A Group of Ministers has endorsed, in principle, moving to two GST rates of 5% and 18% with a separate 40% band for a narrow set of ultra‑luxury and sin goods, leaving the final decision to the Council.
  • Several states have flagged potential revenue loss, sought quantification from the Centre, and proposed an additional levy above the 40% band on high-end items to preserve collections.
  • The Centre has proposed removing the compensation cess as part of rationalisation and is keen to roll out rate cuts before the Dussehra‑Diwali demand window, subject to the Council’s approval.
  • Analysts estimate sizeable consumer savings if approved, including roughly Rs 60,000–80,000 on some small cars and up to about Rs 1.1 lakh on certain SUVs, though the price gap with EVs could narrow and pass‑through to buyers is not assured.