NEW DELHI: The high-powered GST Council, led by Finance Minister Nirmala Sitharaman, is scheduled to meet on September 3-4 to consider transitioning to a two-slab GST system.
According to an office memorandum from the GST Council Secretariat, the two-day meeting will take place in New Delhi.
The council, which includes the finance ministers of all states and union territories alongside the Centre, will review recommendations from three Groups of Ministers (GoMs) on rate rationalisation, compensation cess, and health and life insurance.
Earlier this week, a GoM comprising state ministers met and, in principle, endorsed the Centre’s proposal for a two-tier GST structure.
Under the proposed reform, GST would have two rates—5% and 18%—categorising goods and services as ‘merit’ or ‘standard’. Additionally, a special rate of 40% would apply to select items such as ultra-luxury cars and sin goods.
At present, GST operates under a four-tier system with rates of 5%, 12%, 18%, and 28%.
