Overview

• The Council meets in New Delhi on Sept. 3–4, preceded by an officers’ session on Sept. 2, to consider collapsing GST into 5% and 18% with a 40% band for select sin and luxury goods.
• Fresh agenda items reported for discussion include shifting all food and textile products to the 5% slab, cutting cement from 28% to 18%, reducing salon and similar services to 5%, and exempting individual health and life insurance from GST.
• The rate rejig would eliminate the 12% and 28% slabs, with proposals indicating 18% on small cars (under 4 metres) and 40% on larger vehicles, subject to the Council’s approval.
• Multiple outlets report an implementation target around mid-to-late September, potentially near Navratri, with notifications expected 5–7 days after any decision, though CBIC has asked stakeholders to await official announcements.
• Finance Ministry sources have modelled a potential revenue shortfall of about Rs 40,000 crore from the rate changes, alongside an estimated Rs 20,000 crore hit tied to online gaming receipts, as states seek clarity on compensation.