The 56th GST Council meeting, chaired by Finance Minister Nirmala Sitharaman, began in New Delhi on September 3. The two-day meeting on September 3 and 4 focused on rationalising GST rates.
The Council discussed removing the 12% and 28% slabs and replacing them with 18% and 5%, while adding a 40% slab for sin goods.
Officials confirmed that the meeting aimed at reducing the tax burden on essential sectors while placing higher levies on luxury and harmful products. The new structure focused on simplifying GST and making the system more balanced for citizens and industries.
Essentials Get Cheaper After GST Rate Cuts
The GST Council reduced taxes on several essential goods and services. UHT milk, paneer, roti, parathas, and pizza bread now carry nil GST. Butter, ghee, pasta, jams, sauces, confectionery, dry fruits, and namkeens shifted to the 5% slab. Medicines, diagnostic kits, thermometers, bandages, and oxygen moved to 5%, while life-saving drugs such as Agalsidase Beta and Onasemnogene now attract nil tax. Cement was reduced from 28% to 18%, and small cars, motorcycles under 350cc, bicycles, tractors, ambulances, and electric vehicles also shifted to lower rates. These measures are expected to lower household and healthcare costs nationwide.
Sin Goods and Luxury Products Get Costlier
The GST Council placed higher rates on luxury and sin goods. Tobacco, gutkha, pan masala, and cigarettes now attract 40% GST, up from 28%. Carbonated beverages, caffeinated drinks, and fruit-based fizzy drinks also entered the 40% slab. SUVs and cars with large engines, motorcycles above 350cc, yachts, private aircraft, and firearms such as pistols and revolvers moved to the same slab. Coal, lignite, and peat increased from 5% to 18%, while biodiesel not blended with diesel rose from 12% to 18%. Premium apparel and high-value cotton quilts also shifted to higher slabs along with certain paper products.
JP Nadda Welcomes GST Reforms
Under the visionary leadership of Hon’ble PM Shri @narendramodi ji, the Union Government has announced the Next-Gen GST reforms to support ongoing growth and development.
Reduced tax rates on several essential products will enhance ease of living, help families manage costs, and… pic.twitter.com/5Jg7NeRo3a
— Jagat Prakash Nadda (@JPNadda) September 3, 2025
BJP National President JP Nadda called the GST reforms a “historic gift for the nation.” Writing on X, he said, “Under the visionary leadership of Hon’ble PM Shri @narendramodi ji, the Union Government has announced the Next-Gen GST reforms to support ongoing growth and development.” He added that lower tax rates on essential goods will ease living costs and benefit families, while the reforms will also strengthen the ease of doing business. Nadda thanked Prime Minister Modi and Finance Minister Sitharaman for bringing forward reforms that he said will empower middle-class families and small businesses.
Kangana Ranaut Calls GST Council Meeting a Historic Step
नई दिल्ली में संपन्न जीएसटी परिषद की बैठक आत्मनिर्भर एवं विकसित भारत की दिशा में एक ऐतिहासिक कदम है।
इसमें आमजन, किसान, छोटे व्यापारी, महिलाएँ और युवाओं को राहत देने वाले महत्वपूर्ण सुधारों पर सहमति बनी है।
ये निर्णय न केवल नागरिकों के जीवन को सरल बनाएंगे बल्कि उद्योग और… pic.twitter.com/NaaqjUwY2T
— Kangana Ranaut (@KanganaTeam) September 3, 2025
Actor Kangana Ranaut also praised the GST Council’s decisions on X. She wrote, “The GST Council meeting held in New Delhi is a historic step towards a self-reliant and developed India. In this meeting, consensus has been reached on important reforms that provide relief to the common people, farmers, small traders, women, and youth.” She added that these reforms will simplify lives, energise industries, and encourage local production and entrepreneurship. Ranaut said the reforms reflect the visionary leadership of Prime Minister Narendra Modi and the commitment of Finance Minister Nirmala Sitharaman in building a strong and inclusive economy.
Also Read: GST Reform Meet: Here’s What Gets Cheaper And What Gets Costlier, Details Here
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]
