GST Council Meeting Today: What Are the Expected Changes in GST?

The GST Council has scheduled its 56th meeting today, i.e., September 3, 2025. The Council will discuss major changes in the GST slab. It is expected that the daily use goods will become cheaper. Some other necessary goods that are taxed at a 12% GST rate and an 18% GST rate may be moved to the 5% GST slab. These goods include ghee, butter, toothpaste, shampoo, cheese and milk powder. The changes are expected to give major relief to the small businesses and common consumers.

As per experts, the other goods, like pharmaceutical goods, medical equipment, cement and cars, may also become cheaper. The service sector will also get relief from the tax burden. However, on the other hand, other goods, including luxury goods and sin goods, may get expensive, as it has been proposed to levy 40% GST on luxury cars, SUVs, bikes above 350 cc, cold drinks and tobacco products. This 40% tax aims to cover the losses from the lower slabs. Regarding the compensation cess, it is still not clear whether it will be removed or continue in a new form.

The final decision will be made in the GST Council meeting, which is happening today and tomorrow (September 3 and 4) in New Delhi. The meeting is expected to begin between 10 and 11 in the morning.

Tax professionals say that the reduced tax rates are likely to boost consumption. The businesses in the food sector say that the reduction in GST rates will encourage more people to buy and use food products, and they will not have to rely so much on edible oil. Ghee, which sells around Rs 35,000 crore every year, is expected to gain the most from this tax cut. If the changes are applicable just before the festive season, more people will buy several products at once, as the cost per unit will be reduced.

Apart from this, the ‘inverted duty structure‘, where raw materials or services are taxed more than the final product. The government is expected to discuss this so that prices become fairer and benefit the consumers.