56th GST Council Meeting on September 3–4 to Discuss Major Tax Reforms
The 56th GST Council meeting will take place on September 3–4, 2025, according to an official memorandum issued on Friday. The notification, signed by Arvind Shrivastava, Secretary to the Government of India and ex-officio Secretary to the GST Council, stated that the details regarding the venue and the final agenda will be communicated in due course.
This announcement comes just days after Prime Minister Narendra Modi, during his Independence Day address, assured citizens of a significant “Diwali gift” linked to sweeping GST reforms aimed at simplifying the country’s tax structure.
56th GST Council meeting: Proposed GST Rate Rationalisation
Government sources indicated that the Centre has proposed eliminating the current 12% and 28% GST rates, leaving behind a simplified two-tier system of 5% and 18%. Under this plan, 99% of goods currently taxed at 12% would move to the 5% slab, while nearly 90% of items in the 28% category—including most consumer goods—would shift to the 18% slab.
New 40% Slab for Sin Goods
The rationalisation proposal also includes the creation of a new 40% slab for sin goods such as tobacco and pan masala. This adjustment seeks to balance public health concerns with revenue requirements, while easing the tax burden on essential consumer products.
Council’s Role in Reforming GST Structure
The GST Council, a constitutional body, is entrusted with recommending changes on the implementation of Goods and Services Tax across the country. The upcoming meeting is expected to be a landmark session as it charts the course for the most comprehensive GST restructuring since the tax’s introduction in 2017.
Anticipated Diwali Relief for Consumers
These proposed changes are seen as part of the government’s broader strategy to simplify compliance, stimulate consumer demand, and strengthen economic growth. If approved, the reforms are likely to bring major relief to households ahead of the festive season, in line with the Prime Minister’s assurance of a “big Diwali gift” for the people of India.
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