Quick Summary
The Goods and Services Tax (GST) Council is reportedly considering a reduction in tax rates on select items to stimulate consumption while maintaining revenue stability, according to a report citing sources familiar with the discussions. Proposal to Eliminate 12% GST Slab One of the key proposals under consideration is scrapping the 12% tax slab and shifting items either to the 5% or 18% categories. This move aims to simplify the tax structure and provide a much-needed boost to consumption,
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FAQ :
The GST Council is reportedly considering reducing tax rates on select items and potentially eliminating the 12% GST tax slab.
Items currently taxed at 12% could be moved to either the 5% or 18% tax categories.
The aim is to simplify the tax structure and provide a boost to consumption.
A ministerial panel evaluating these tax adjustments is led by Bihar Deputy Chief Minister Samrat Chaudhary.
The panel was established in September 2021 to address tax anomalies, resolve classification disputes, and optimise tax rates.
GST collections reached a nine-month high of ₹1.71 trillion in January 2025, showing a 10.9% year-on-year increase.
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