New Delhi: As the GST Council Meeting began on September 3, 2025, Wednesday, media reports suggested several crucial decisions are being taken so that all sections of the society – entrepreneurs to common man – gets the benefits.
Reports suggested that the GST Council, which is chaired by Finance Minister Nirmala Sitharaman, decided that MSME registration should be fast tracked and the entire process is completed within three days.
GST Council Meeting: Health insurance
The Council is also considering giving big relief to taxpayers by slashing the rates of health insurance, life-saving drugs, reports mentioned. The GST Council is reportedly of the view that a cut rate on insurance premiums and life-saving drugs should be applied.
CNBC-TV18 reported that the GST Council reportedly gave the green signal to clear refunds stuck under inverted duty structure for chemical, fertilisers, textiles, pharma, and other industries in seven days.
The Council also passed the automated GST refunds for exporters and inverted duty cases, reports stated.
GST Council reportedly proposed to introduce ‘Automatic Return Filing’ and reduce compliance issues. The Council also discussed challenges being faced in the registration & refunds process of start-ups.
Automobile sector
A Reuters report mentioned that automobile majors including JSW MG Motor, BYD, Mercedes-Benz, BMW, Tata Motors, and Mahindra & Mahindra are likely to be hit by luxury EVs priced above Rs 20 lakh. The GST Council is reportedly proposing higher tax on luxury EVs and hiking the current 5% tax to 18%.
The GST Council is likely to reduce the tax rates on numerous essential items such as dry fruits, packaged snacks, butter, pickles, chutneys, murabba, jams, ghee. The tractors, refrigerators, air conditioners, and other electronics are also likely to get cheaper as GST rate could be slashed.
The 56th meeting of the GST Council started deliberations on ‘next-gen GST’ reforms on Wednesday. The meeting is being attended by Union Finance Minister Nirmala Sitharaman and state ministers. The GST meeting is being held to slash tax rates on items of daily consumption, and eliminating duty inversion in sectors, like textiles, and ease compliance burden for MSMEs.