The Goods and Services tax Council, which is headed by the Union Minister of Finance Nirmala Sitharaman, will rollout the new GST slabs by around September 22, 2025, to boost festive demand in India, according to sources.
When Will The New GST Slabs Get Implemented?
These tax slabs will be implemented by September 22, which is going to coincide with Navratri celebrations.
The GST council is expected to meet on September 3-4, 2025 in the national capital to deliberate on the simplified two-structure GST slab of 5% and 18% proposed by the Centre.
The notifications will start rolling out around five to seven days after the GST Council’s decision.
GST Council Meet On September 3-4
The GST Council, which comprises of the Union Minister of Finance of all states as well as Union Territories apart from the Centre, will deliberate on the recommendations by the group of ministers on rate rationalisation, compensation cess as well as health and life insurance.
The Group of Ministers (GoM) including the state ministers met this week and, in principle, they agreed to the central government’s proposal for a two-slab GST.
Additionally, GST should be a two-rate structure of 5% and 18%, classifying goods and services as ‘merit’ and ‘standard’, according to the reform proposed by the Centre to the GoMs.
Further, a special rate of 40% will be levied on select few items such as ultra-luxury cars and sin goods.
Some labour-intensive items will also continue to enjoy concessional lower rates of 0.1%, 0.3%, or 0.5% to support employment-intensive sectors.
Prime Minister Modi’s GST 2.0 Reforms
Prime Minister Narendra Modi on Independence Day announced the next-generation of GST reforms, also known widely as GST 2.0 in order to rationalize the existing tax rates.
PM Modi called GST one of the most significant reforms ever since the introduction of the tax in 2017 and highlighted the need for the upcoming next-generation changes to provide relief to the common man, farmers, the middle class, as well as MSMEs.