Daijiworld Media Network - Mumbai

Mumbai, Sep 2: A major revamp of India’s Goods and Services Tax (GST) structure is on the table as the GST Council convenes for a crucial two-day meeting this week. At the heart of the discussion is the Centre’s proposal to reduce GST rates on more than 150 goods and services in a sweeping reform aimed at easing the tax burden and boosting consumption.

According to official sources, the Council is expected to move several items from the 12% and 18% tax slabs to the 5% or even the zero-tax (nil) GST category. The plan also includes collapsing the current four-rate GST system into a more streamlined two-rate structure.

Everyday Essentials in Focus

Common household food items such as loose paneer, khakhra, pizza bread, chapati, and roti—currently taxed between 5% and 18%—may soon fall under the nil GST category. Ready-to-eat items like paratha and parotta, which currently attract an 18% tax, are also being considered for exemption.
Other items like butter, condensed milk, jams, namkeens, mushrooms, and dates could see GST slashed from 12% to 5%.

Urban Snacks and Sweets May Get Cheaper

Urban consumers and younger demographics may benefit from tax cuts on items like cocoa-based chocolates, pastries, ice cream, and breakfast cereals (e.g., cornflakes), with GST proposed to drop from 18% to 5%.

Relief for the Auto Sector

To encourage vehicle purchases ahead of the festive season, the Council may also reduce the GST on entry-level passenger vehicles and two-wheelers from 28% to 18%. These vehicles currently carry an additional compensation cess of 1% to 22% depending on engine size and body type.

Education Materials to Go Tax-Free

In a move aimed at helping students and families, GST on educational supplies like maps, globes, exercise books, lab notebooks, graph books, and pencil sharpeners may be reduced from 12% to 0%, just in time for the academic year.

When Will Changes Be Implemented?

Once approved by the Council—which includes representatives from both the Centre and all states—the revised rate structure could take effect as early as September 22.

The comprehensive adjustment is being seen as a pre-festive season boost to demand while simplifying India’s complex indirect tax system.