GST Council meeting 3-4 September
To deliberate on the Center’s proposal for a streamlined two-slab structure of 5% and 18%, as well as a special tax of 40% on demerit items, the GST Council will convene in Delhi on September 3–4.
Ending the compensation cess by October 31, 2025, will be discussed at the 56th meeting of the GST Council, which is scheduled for September 3–4, 2025. The Center may intend to divide the remaining ₹2,000 to ₹3,000 crore cess equally among themselves, per Money Control’s report.
In order to make up for the revenue losses caused by the introduction of the GST, the compensating cess was implemented in 2017. Tobacco, chilled beverages, and high-end automobiles are all subject to this tax.
Extended Compensation Cess for Debt Repayment
During COVID-19, the central government borrowed 2.69 lakh crore to support the states. In order to repay this loan, the compensation cess was extended until March 2026.
The government is on schedule to pay back this debt by October 2025 because of the robust GST collection. In this case, whether to fully eliminate the cess or include it in GST slabs would be decided by the GST Council at its subsequent meeting.
Slabs of 12% and 28% will be removed.
At the GST Council meeting, a decision about lowering GST slabs may be made. The removal of the 12% and 28% GST slabs may be authorized. There will only be two GST slabs—5% and 18%—if this occurs. The 40% range will include luxury goods.
There are four GST slabs available at the moment: 5%, 12%, 18%, and 28%. The removal of the 12% and 28% GST slabs was authorized by the GST Council’s Group of Ministers (GoM), which convened on August 21.
On Independence Day, PM Modi announced changes to the GST.
On Independence Day, Prime Minister Narendra Modi announced from the Red Fort that a significant gift would be given this Diwali. Next-generation GST reforms are what we’re bringing. Common folks will gain substantially from lower taxes and reduced prices for everyday goods.
These things will becoming less expensive: The 12% tax on these will drop to 5%.
Experts predict a decrease in the cost of common antibiotics, painkillers, processed foods, snacks, frozen vegetables, condensed milk, sewing machines, pressure cookers, geysers, branded snacks, dry fruits, toothpaste, soap, hair oil, and similar items.
