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Informist, Wednesday, Aug. 20, 2025

 

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--Source: Sitharaman told GoMs to work proactively on GST reforms
--Source: Sitharaman told GoMs 2-slab GST structure good for econ
--CONTEXT: Sitharaman meets GoM for GST on health, life insurance Wed
--Source: Sitharaman told GST Council GoMs govt committed to cut tax burden
--Source: Sitharaman told GoMs GST rate reduction to boost econ

 

By Priyasmita Dutta and Sagar Sen

 

NEW DELHI – Finance Minister Nirmala Sitharaman Wednesday told the groups of ministers set up under the Goods & Services Tax Council to work proactively towards the GST reforms announced by Prime Minister Narendra Modi on Independence Day. Sitharaman met the groups of ministers ahead of their two-day meeting in New Delhi.

 

Three groups of ministers from the GST Council are scheduled to meet Wednesday and Thursday to deliberate on the Centre's proposals for the indirect tax. The Centre has proposed to reduce the number of tax slabs under GST to two along with a special rate for a select few items. Currently, there are four slabs--5%, 12%, 18%, and 28%--under GST.

 

Sitharaman told the ministers that a two-slab GST structure is good for the economy, a person aware of the matter said. She also told them the government is committed to lowering the tax burden. She also mentioned that reducing the GST rate will give the economy a boost, according to the source.

 

The ministerial panels on life and health insurance and on compensation cess will meet Wednesday. The group of ministers on GST rate rationalisation will meet Thursday.

 

Modi has announced the roll-out of GST reforms by Diwali. The prime minister has also promised that his government will significantly slash GST on regular-use items, which would help to lower prices of such goods and also help domestic micro, small, and medium enterprises.

 

The Centre has proposed scrapping the 12% and 28% tax slabs under GST. Other than retaining the 5% and 18% slabs, there is a proposal to add a special rate of 40% for some "sin goods". The GST Council, which has been deliberating on the issue of rate rationalisation and simplification of the tax structure for several years, may now have to expedite its work to meet the Diwali deadline set by the prime minister.

 

The GST Council had discussed rate rationalisation at its December meeting but could not reach a conclusion as members felt more details needed to be worked out before announcing any changes to the rates.  End

 

Edited by Rajeev Pai

 

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