The 56th meeting of the Goods and Services Tax (GST) Council is scheduled to take place on September 3 and 4, 2025, in New Delhi, beginning at 11:00 AM on both days.
A formal communication regarding the schedule has been issued to all members of the Council, including the finance ministers of all states and union territories, as well as representatives from the central government. The venue details and the full agenda for the two-day meeting are expected to be shared shortly.
56th GST Council Meeting on September 3 and 4, 2025 in New Delhi
In preparation for this crucial meeting, an officers’ meeting is slated for September 2, also in New Delhi. This pre-meeting will involve senior bureaucrats and officials who will fine-tune the groundwork and recommendations to be discussed by the Council the following day.
Upcoming GST Council Meeting Agenda
One of the key topics on the agenda for the 56th GST Council meeting is the deliberation on proposals from three key Groups of Ministers (GoMs). These GoMs have been tasked with evaluating major reform areas including GST rate rationalisation, compensation cess, and the taxation of health and life insurance services.
Centre Proposes Simplified Two-Slab GST Rate System
In recent discussions, the GoM on rate rationalisation reached a broad consensus with the Centre on a significant structural change to the current tax system. As per a report by PTI, the GoM has in principle agreed to the Central Government’s proposal to shift to a two-rate GST structure. The proposed model would simplify the existing GST framework by introducing just two standard rates, 5% and 18%, instead of the current four-tier system of 5%, 12%, 18%, and 28%.
The central idea behind this reform is to classify goods and services into two broad categories; ‘merit’ goods, which would be taxed at the lower 5% rate, and ‘standard’ goods and services, which would fall under the 18% slab. In addition to this two-tier structure, a special GST rate of 40% has been proposed for a limited category of high-end or “sin” goods such as ultra-luxury cars, tobacco, and other demerit items.
If approved by the Council, this overhaul could mark one of the most significant tax reforms since the introduction of GST in July 2017. The simplified two-rate system is aimed at making GST more predictable, reduce litigation, and improve compliance for businesses across the country.
This meeting holds considerable importance for both businesses and consumers, as the outcome could impact pricing, tax liabilities and government revenue streams. Stakeholders across industries are closely watching the developments, especially sectors such as FMCG, infrastructure, insurance, and automobiles, which are expected to be most affected by any changes in the rate structure.