New Delhi: The 56th GST Council meeting started today in New Delhi. This is a two-day meeting where many important tax decisions can be taken. The meeting is being chaired by Finance Minister Nirmala Sitharaman, and includes finance ministers from all states.
What Reforms Did PM Modi Promise?
On August 15, Prime Minister Narendra Modi had announced big changes in GST from the Red Fort. He said a new generation GST reform is coming soon. This meeting could make that promise real — just before Diwali, which is why people are calling it "Modi’s Diwali Gift."
What GST Changes Are Being Discussed?
The Council is thinking of reducing the number of tax slabs. Right now, there are 5 percent, 12 percent, 18 percent, and 28 percent slabs. The plan is to remove the 12 percent and 28 percent slabs and move items into 5 percent or 18 percent.
A new 40 percent slab may also be created for luxury and sin goods like alcohol, tobacco, and high-end cars.
Which Items May Get Cheaper?
Toothpaste, shampoo, talcum powder, and soap may move from 18 percent to 5 percent GST.
- Butter, cheese, and ghee may also become cheaper.
- Electronics like fridge, TV, and AC may see lower GST rates.
- Small cars may be moved from 28 percent to 18 percent GST, helping companies like Maruti Suzuki.
- But electric luxury cars from brands like Tesla and BYD may face higher taxes.
Who Is Attending the Meeting?
Apart from Finance Minister Sitharaman and Minister of State MP Chaudhary, CMs from Delhi, Haryana, Goa, J&K, and Odisha are attending. Deputy CMs from Arunachal, Bihar, MP, and Telangana, as well as the Governor of Manipur, are also present.
What Did BJP Leaders Say?
BJP MP Praveen Khandelwal said this is a next-gen GST reform under PM Modi’s leadership. He said traders and consumers will both benefit, as the system will become simpler and more transparent.
Will GST Filing Also Get Easier?
Yes. The government may also simplify the registration and filing process for businesses, especially for small companies, to help them grow faster.
