New GST Rates September 2025: Council Likely to Roll Out Revised Tax Slabs by Sept 22

India is set to witness a major tax reform as the new GST rates September 2025 are expected to be announced by September 22, according to government sources. The Goods and Services Tax (GST) Council, headed by Finance Minister Nirmala Sitharaman, is preparing to finalize and implement the revised structure just ahead of the Navratri festival season.

Prime Minister Narendra Modi, in his Independence Day speech on August 15, assured citizens of “next-generation” GST reforms that will ease the burden on the common man. He described the move as a “Diwali gift” for households and businesses across India.

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GST Council to Discuss New GST Rates September 2025 in Upcoming Meeting

The GST Council, which consists of finance ministers from all states and Union Territories alongside the Centre, will convene on September 3–4 in New Delhi. During the meeting, the proposed simplified two-tier GST tax system is expected to be discussed in detail.

The Centre has suggested a two-slab structure of 5% and 18%, classifying goods and services into ‘merit’ and ‘standard’ categories. A special higher rate of 40% will continue to be levied on select ultra-luxury and sin goods.

Currently, GST operates under a four-tier slab of 5%, 12%, 18%, and 28%. The move to simplify the structure is aimed at improving efficiency and removing complications for taxpayers.

Key Pillars Behind the New GST Reforms

According to officials, the government’s GST reform plan rests on three main pillars:

1. Structural Reforms – correcting the inverted duty structure, addressing classification issues, and bringing long-term predictability.
2. Rate Rationalisation – reducing tax slabs and lowering rates on items used by the common man as well as aspirational products.
3. Ease of Living – simplifying GST compliance for startups, enabling pre-filled returns, and speeding up the refund process.

This step is in line with the government’s goal to make India a self-reliant economy while also boosting its position as a future global economic leader.

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Impact of New GST Rates September 2025 on Consumers and Businesses

Experts suggest that the simplified GST structure will reduce compliance costs, bring relief to small businesses, and make taxation more transparent. Lower rates on commonly used goods are expected to directly benefit households.

Meanwhile, large businesses are likely to benefit from a faster refund process and reduced classification disputes. The GST Council’s decision will be closely watched, as the changes are expected to shape India’s taxation system for years to come.

Notifications on New GST Rates Expected After Council Decision

As per sources, official notifications regarding the new GST rates September 2025 will begin rolling out within a week after the GST Council’s final decision. The new rates are most likely to be in place before September 22, coinciding with the festive season.

With the promise of reduced tax burdens and a more efficient system, the upcoming GST reforms are being seen as a major step towards modernising India’s indirect taxation framework.

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