FM Sitharaman Chairs 56th GST Council Meeting in New Delhi Today:

FM Sitharaman Chairs 56th GST Council Meeting in New Delhi Today The Finance Minister, Nirmala Siharaman, has begun chairing the Goods and Services Tax (GST) 56th Council Meeting in New Delhi Today (August 03, 2025, Wednesday). In the meeting, the ministers are reviewing the suggested reductions in GST rates on more than 150 products. The council is scheduled to meet on two days, i.e., on September 3 and 4, 2025. All states' finance ministers are attending the meeting.

Finance Minister @nsitharaman to chair 56th GST Council meeting in New Delhi today. The Council to deliberate on India’s next-generation GST reforms. #GST #GSTCouncil @FinMinIndia pic.twitter.com/XgL5cGNkzS

— DD News (@DDNewslive) September 3, 2025

The centre has suggested GST rate revisions for the first time. Additionally, they proposed a two-slab system, where a 5% GST rate is for essential items, while 18% is for non-essential items (standard rate), and 40% GST is for sin goods such as pan masala, tobacco, and cigarettes (worth Rs. 50 and more). Aimed at replacing the present four-slab system in the country (5%, 12%, 18%, and 28%). 

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GST rates are anticipated to be reduced on around 175 items, according to the reports. In the proposed reforms, sectors including automobiles, FMCG, and insurance are likely to be affected the most. With this meeting, the finance minister is planning to introduce next-generation GST reforms, aimed at creating a transparent economy, reducing compliance burdens, and benefiting small businesses. Below is the table mentioning the names of the items highly expected to be affected by the proposed GST reforms:

Item	Old GST Rate	New GST Rate
Small cars up to 1200 cc	28%	18%
Two-wheelers up to 350 cc	28%	18%
Three-wheelers, ambulances	28%	18%
Tractors	12%	5%
Fertiliser and Pesticides	12%	5%
AC, washing machine	28%	18%
Toothpaste, toiletries	18%	5%
Butter, dry nuts, bhujia	12%	5%
Cornflakes, pastry, biscuit, ice cream	18%	5%
Packaged water	18%	5%
Cement	28%	18%