GST Council meeting: The GST Council, chaired by Union Finance Minister Nirmala Sitharaman, announced historic rate cuts on Wednesday, marking the biggest reform of the GST system since its introduction in India on July 1, 2017. From healthcare to education to daily consumption items, the federal indirect tax body doled out a major Diwali gift to Indian consumers.
The new GST rates will be effective from 22 September, the first day of Navratri.
“All this will be effective 22 September 2025, the first day of Navratri… The changes on GST of all products except sin goods, will be applicable 22 September…” said the Finance Minister.
Key takeaways from GST reforms
Let’s take a look at 10 key takeaways from the 56th GST Council meeting:
1. Only two GST tax slabs now
Earlier, there were four GST tax slabs of 5%, 12%, 18%, and 28%. The GST Council has done away with the 12% and 18% slabs, which means now goods and services will be taxed under two slabs of 5% and 18%.
This will remove complexity and confusion from the tax structure. The biggest benefit is that many items which were earlier in the higher brackets have come down to the lowest bracket, making them cheaper.
(This is a developing story. Please check back for fresh updates.)
