GST Council to meet on Sep 3-4 to discuss key reforms in tax system

New Delhi, Aug 22, 2025

The 56th GST Council meeting, chaired by Finance Minister Nirmala Sitharaman, will discuss major reforms, including rate rationalisation and compensation cess.

The 56th Goods and Services Tax (GST) Council will meet in New Delhi on September 3–4 to discuss major reforms in the indirect tax system. The two-day deliberations, to be chaired by Union Finance Minister Nirmala Sitharaman, are expected to take up issues related to rate rationalisation, compensation cess and measures to improve compliance.

An officers’ meeting has also been scheduled for September 2 to prepare the groundwork for the Council’s discussions.

The Centre has proposed shifting to a simpler two-rate structure of 5 per cent and 18 per cent, while scrapping the current 12 per cent and 28 per cent rates, along with a peak levy of 40 per cent on high-end luxury and sin goods.

Prime Minister Narendra Modi described the move as a “next-generation reform” aimed at easing compliance and lowering disputes in his Independence Day address. The Council will also likely discuss introducing an additional duty of over 40 per cent on select items to make up for states’ revenue needs after the withdrawal of compensation cess.

[The Business Standard]