Synopsis: The 56th GST Council meeting may approve a major two-slab tax structure of 5% and 18%, shifting over 150 items to lower rates. From household food items to school supplies and entry-level vehicles, the move aims to ease compliance and boost spending.
The upcoming 56th GST Council meeting is expected to usher in one of the biggest reforms since the launch of the Goods and Services Tax (GST) in 2017. The Council, comprising representatives from both the Centre and the States, will deliberate on a two-slab structure of 5% and 18%, reducing tax rates on more than 150 items to simplify compliance and benefit small businesses and households.
Currently, GST is divided across multiple slabs of 5%, 12%, 18%, and 28%. The new proposal seeks to eliminate the 12% and 28% slabs, moving products into lower tax categories. A special 40% slab will apply to a select few luxury and sin goods.
Key Proposals Under Discussion
1. Daily Household Food Items
- Loose paneer, khakhra, pizza bread, chapati, and roti may move to the nil GST category.
- Ready-to-eat foods like paratha and parotta, currently at 18%, may also get exemptions.
- Items like butter, condensed milk, jams, nuts, namkeens, mushrooms, and dates could shift from 12% to 5%.
2. Packaged Snacks & Confectionery
- GST on chocolates, pastries, ice cream, and breakfast cereals such as flakes may be cut from 18% to 5%.
3. Automobiles
- Entry-level passenger vehicles and two-wheelers may see GST reduced to 18% from the current 28% plus cess. This could make cars and bikes more affordable ahead of the Diwali season.
4. Education Essentials
- Items like maps, globes, sharpeners, exercise books, graph books, and lab notebooks may move from 12% to zero GST, reducing school expenses for families.
The changes aim not only to reduce the burden on households but also to stimulate consumption at a time when inflationary pressures remain high. If approved, the revised GST structure could be implemented by September 22.
Experts believe the move will boost demand across food, education, and automobile sectors, while also simplifying compliance for small businesses and traders.
Disclaimer: This article is based on publicly available reports and government proposals. Final GST rate changes will depend on the official approval of the GST Council. Readers should verify the latest updates from official government notifications before making financial or business decisions.
