The 56th meeting of the Goods and Services Tax (GST) Council will begin on Wednesday in New Delhi to review proposed reductions on more than 150 items. The two-day meeting will be chaired by Finance Minister Nirmala Sitharaman and attended by finance ministers from all states.
Sitharaman said the next-generation GST reforms aim to create a transparent economy, reduce compliance burdens, and benefit small businesses.
The Centre has proposed rate rationalisation under GST for the first time, introducing a two-slab system: 5% for essential items, 18% standard rate, and 40% for sin goods like pan masala, tobacco, and cigarettes. This proposal was discussed during the Group of Ministers (GoM) meeting in Delhi on August 20-21 and will now be considered by the GST Council on September 3-4.
Earlier, Prime Minister Narendra Modi, in his Independence Day address, highlighted the benefits of GST, stressing that the next-generation reforms would provide relief to the common man, farmers, the middle class, and micro, small, and medium enterprises (MSMEs).
