GST UPDATEZ ON 28-08-2025 by R.SRIVATSAN, IRS, NACIN, CHENNAI
The Goods and Services Tax (GST) Council, is expected to introduce revised GST rate slabs around 22nd September 2025.
The rollout is likely to align with the impending celebrations on account festival season ahead which traditionally leads to increased economic activities.
The GST Council is scheduled to convene in New Delhi on 3rd & 4th September, 2025, to discuss the Centre’s proposal for a simplified two-rate GST structure, 5% and 18%.
It is expected that notifications regarding the new rates may be released within five to seven days following the Council’s decision.
The Group of Ministers (GoM) on rate rationalisation, compensation cess, and insurance reached a consensus in principle on the Centre’s proposal for a dual-rate GST system.
Just to recollect the incidents in the recent past on the proposed reforms, the current five-tier GST structure of Nil, 5%, 12%, 18%, and 28% would be replaced by a two-slab model. Goods and services would be grouped into two main categories i.e.,‘merit’ (5%) and ‘standard’ (18%).
A higher 40% rate would continue to apply to select luxury and sin goods, to be notified.
Meanwhile, it appears that certain labour-intensive goods may be retained at concessional rates, such as to support MSME & other job-generating sectors.
Well….
The authorities have issued an advisory suggesting that speculation on GST rates may be avoided as premature speculation gives rise to baseless rumours and may cause volatility in the markets. All the decisions in this regard are taken collectively by the GST Council which comprises of the representatives from Centre as well as States. We need to await for the official announcements which will be made after the GST Council meeting.
The updated GST structure aims to foster self-reliance and strengthen the manufacturing and MSME sectors with a broader vision to implement the next phase of GST reforms as part of India’s path toward becoming an Atmanirbhar Bharat.
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