The 56th GST Council meeting, led by Finance Minister Nirmala Sitharaman, began in New Delhi on September 3. The Council scheduled the meeting for September 3 and 4. Officials discussed major decisions on tax rationalisation during the two-day session.
Proposals included eliminating the 12% and 28% GST slabs to introduce a simpler structure of 18% and 5%, while keeping a 40% slab for ‘sin’ goods.
Finance Ministry officials confirmed that the decisions would focus on reducing tax burdens on the middle class and common consumers across India.
GST Council Announces Reduction in Common Items
Nirmala Sitharaman announced major GST reductions after the meeting. She said, “In common man and middle class items, there is a complete reduction.” Items reduced to 5% GST included hair oil, toilet soap, soap bars, shampoos, toothbrushes, toothpaste, bicycles, tableware, kitchenware, and several household goods. The Council emphasised lowering costs on daily essentials to provide direct relief to consumers. The decisions marked one of the largest tax cuts since the introduction of GST in India.
#WATCH | Delhi: After the 56th GST Council meeting, Union Finance Minister Nirmala Sitharaman says, “In common man and middle class items, there is a complete reduction.”
Items on which GST has been reduced to 5%- hair oil, toilet soap, soap bars, shampoos, toothbrushes,… pic.twitter.com/jaHxlmsVbS
— ANI (@ANI) September 3, 2025
GST on Milk, Paneer and Indian Breads Removed
The Council reduced GST to zero on several essential items. Ultra-high temperature milk, chena, and paneer moved from 5% to nil tax. The Council also exempted all Indian breads, including roti and paratha, from any GST. Finance Minister Nirmala Sitharaman explained that the move would ease costs on food essentials and provide relief to both rural and urban households. Officials said that the decision aimed to ensure affordability of everyday staple foods consumed across India.
GST Slashed on Packaged Food Products
The GST Council reduced several food products from higher slabs to 5%. Namkeen, bhujia, sauces, pasta, instant noodles, chocolates, coffee, preserved meat, cornflakes, butter, and ghee were all brought under the 5% tax rate.
The move lowered costs on packaged and processed food products. Officials said the decision would help consumers while boosting sales in the food industry. Finance Minister Nirmala Sitharaman highlighted the Council’s effort to support household budgets and stabilise market prices for essential and semi-essential food items.
GST Reduction on Electronics and Vehicles
The Council also reduced taxes on several electronics and automobiles. Goods earlier under 28% now shifted to 18%. These included air conditioning machines, televisions over 32 inches, dishwashing machines, small cars, and motorcycles with engine capacity up to 350 cc. Finance Minister Nirmala Sitharaman confirmed that all televisions now fall under the 18% slab. Officials said these changes would encourage sales in the electronics and automobile sectors while reducing the financial burden on middle-class buyers.
Key Relief Announcements from the GST Council
The Finance Minister announced that a wide range of items moved from higher tax slabs to lower ones.
Several goods shifted from the 12% and 18% tiers to the 5% slab, including noodles, pasta, food items, rotis, toothpaste, bicycles, drugs, medicines, medical equipment, and agricultural equipment.
She said the GST Council aimed to support the middle class, farmers, and patients with lower tax burdens. Officials said the decisions would bring long-term benefits to households and strengthen the economy by increasing consumer demand.
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Swastika Sruti is a Senior Sub Editor at NewsX Digital with 5 years of experience shaping stories that matter. She loves tracking politics- national and global trends, and never misses a chance to dig deeper into policies and developments. Passionate about what’s happening around us, she brings sharp insight and clarity to every piece she works on. When not curating news, she’s busy exploring what’s next in the world of public interest. You can reach her at [swastika.newsx@gmail.com]
