Overview

• The GST Council meets on September 3–4 to take up the GoM proposal to retain only 5% and 18% slabs and create a ~40% band for select sin and ultra-luxury goods.
• Reports map most 12% items to 5% and many 28% items to 18%, with cuts flagged for medicines and devices, textiles, agriculture inputs, renewables, and small cars.
• Premium and business-class air tickets are proposed to move from 12% to 18%, while casinos, betting and race clubs, tobacco, and high-end vehicles would face a 40% rate.
• Finance ministers from eight opposition-ruled states seek multi-year compensation and an additional levy on sin and luxury items, warning of 15–20% hits to state GST revenues.
• Independent estimates suggest annual revenue losses of ₹70,000 crore to ₹1.8 lakh crore, and experts caution on transition risks such as input tax credit and stock valuation along with the need for anti-profiteering enforcement.