The 56th GST Council meeting, chaired by FM Nirmala Sitharaman, is set to review major tax reforms with rate cuts on over 175 items and a shift to a new two-slab system.
Saloni Kumari | Sep 3, 2025 |
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%).
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% |
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