GST Council May Approve Rate Cuts on Over 150 Items This Week

Mumbai – The Goods and Services Tax (GST) Council is likely to take a final call this week on the Centre’s proposal to reduce GST rates on more than 150 products, as part of a broader plan to simplify the tax structure.

The two-day meeting is expected to consider moving several items from the 12% and 18% slabs to the 5% slab or zero-tax category, easing the burden on households and encouraging consumption. The Council is also discussing an overhaul of the current four-tier GST system into a simpler two-rate framework.

Among the proposals:

• Essential food items such as loose paneer, khakhra, pizza bread, chapati, and roti may be shifted to the nil-GST category.

• Ready-to-eat foods like parathas and parottas, currently taxed at 18%, could be exempted.

• Butter, condensed milk, jams, nuts, namkeens, mushrooms, and dates may see their rates cut from 12% to 5%.

• Confectionery and packaged snacks including chocolates, pastries, ice cream, and breakfast cereals may move from 18% to 5%.

The Centre has also proposed reducing GST on entry-level cars and two-wheelers from 28% to 18%, excluding cess, to make them more affordable ahead of the festive season.

In the education sector, items like maps, globes, pencil sharpeners, notebooks, and graph books could be exempted from GST altogether, helping reduce costs for students and parents.

If approved, the revised GST structure could be rolled out by September 22, after the Council – comprising representatives from both the Centre and the states – finalizes the changes.

With inputs from IANS