New Delhi: In a landmark decision, the GST Council, in its 56th meeting chaired by Union Finance Minister Nirmala Sitharaman, has approved a simplified structure with only two tax slabs — 5% and 18%.
The meeting, held on Wednesday in New Delhi, finalized several key proposals. Uttar Pradesh Finance Minister confirmed that the existing 12% and 28% GST slabs have been scrapped, and most items from those categories will now fall under the newly approved two-tier system. This move is expected to make several goods cheaper.
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18 Aug 2025
Speaking to Business Today, the UP Finance Minister highlighted that the decisions taken in the Council meeting will come into effect from September 22.
This was the first GST Council meeting since Prime Minister Narendra Modi’s Independence Day address on August 15, where he emphasized the need for GST reforms. The latest decision marks a significant step towards a simpler and more streamlined tax regime.
