GST Council agrees to retain 18% slab
The Group of Ministers (GoM) of the GST Council has approved the Central Government’s plan to eliminate two of the four GST slabs, Bihar Dy CM Samrat Choudhary said news agency PTI on Thursday. Only the two remaining regimes, 5% and 18%, would remain when these two slabs, 28% and 12%, were eliminated.
The Centre’s suggestion would now be forwarded to the GST Council by the GoM. Following the council’s approval, the Indian government must publish an official gazette announcing the new rates for final implementation.
India is getting ready for the September–October 2025 GST reforms, which are anticipated to simplify the tax system and facilitate compliance. The GST reforms include lowering the GST rates on everyday necessities, packaged foods, electronics, and insurance rectifying inverted tax structures, and reducing the number of GST slabs. According to the Prime Minister’s Independence Day speech, it is expected to debut by Diwali 2025.
Important Lessons from the GST Reforms
Prime Minister Shri Narendra Modi emphasized the GST as a significant change on the 79th Independence Day. In order to benefit MSMEs, farmers, the middle class, and regular people, he asked for further GST reforms, some of which are mentioned below. The government’s plans to boost economic activity, encourage growth, and fortify industries were submitted to the Group of Ministers (GoM) on Rate Rationalization of the GST Council. New GST amendments to the GoM’s compensation cess have been proposed by the Center.
West Bengal State Finance Minister: Ultra-luxury autos are subject to 40% GST
Furthermore, Chandrima Bhattacharya, the finance minister for West Bengal, stated that ultra-luxury cars ought to be subject to a 40% GST charge. On Thursday, the GST Council’s GoM of state finance ministers began a critical discussion on rationalizing the GST rate in New Delhi. Choudhary chairs the six-member GoM on tariff rationalization.
The Group of Ministers (GoMs) established by the GST Council on Compensation Cess, Health & Life Insurance, and Rate Rationalization was informed on Wednesday by Finance Minister Nirmala Sitharaman that “the rate rationalization will provide greater relief to the common man, farmers, the middle class, and MSMEs, while ensuring a simplified, transparent, and growth-oriented tax regime.”
The chairman of the GoM stated on Wednesday that the majority of the group’s ministers had also decided to fully exempt life and health insurance plans from GST.
The average person’s cost of purchasing insurance coverage would decrease if indirect taxes were eliminated.
