GST Council Meeting Kicks Off To Fulfill PM Modi's Diwali Bonanza- Check Industry Expectations

The Union Finance Minister Nirmala Sitharaman-chaired GST Council meet has begun in New Delhi on Wednesday, September 3, 2025. 

The meeting, which will continue for till Thursday as the council deliberates on the ambitious overhaul of the Goods and Services Tax to lower tax rates on daily use items ranging from dairy products to automobiles, while also exempting certain items from GST completely. 

Proposed Two Slab GST Structure

The Council, composed of ministers from all states, will discuss the Centre's 'next gen' reform proposal of having just two tax rates of 5 and 18 per cent by moving products from the current 12 and 28 per cent slab to lower rates.

Additionally, a special 40 per cent tax has been proposed to be levied on select sin goods. As per the Centre's proposal, 99 per cent of the items in the current 12 per cent bracket will be shifted to the proposed 5 per cent slab. Besides, 90 per cent of the items in the 28 per cent bracket would be shifted to 18 per cent.

What Key Industry Players And Experts Expect From GST?

Setting expectations from the GST meet being held today, Vivek Jalan, Partner, Tax Connect Advisory Services LLP, said, "In the upcoming GST Council meeting, a big change may be brought about in GST Refunds. From a policy side a fully technological driven platform for Provisional Refunds, has been an ask of Industry. 90% of the total refunds may now be sanctioned as Provisional Refunds, within 7 days to those taxpayers whose risk score is low. These are expected to be automatic and without intervention of the officers, who may post-facto do the complete scrutiny while sanctioning the final refunds."

Ranganath T., Secretary General of Think Change Forum, said, “GST reform must go beyond symbolism. For it to be a genuine amendment for the people of India, the details matter. The goal should be a transparent, predictable tax system that keeps the peak rate at 18% and gradually converges to a single rate. Only then will GST truly become ‘One Nation, One Tax’."

Voicing out GST reforms to aid the auto industry, Chetan Maini, Co-founder & Chairman, SUN Mobility, said, "While EVs attract just 5% GST, standalone batteries are taxed at 18%, a mismatch that creates an inverted duty structure and adds to the cost of OEMs and infrastructure players. Battery swapping and charging services are charged at 18%, which makes adoption expensive for gig workers, delivery riders, and fleet operators who are driving this transition on the ground."

Meanwhile, in the lead upto the ongoing GST meeting, eight opposition-ruled states demanded revenue protection, however, Andhra Pradesh extended full support to the Centre’s proposals, calling the reforms beneficial for the common man and the economy.