Modi government to launch new GST slabs around September 22
25 Aug 2025

The Goods and Services Tax (GST) Council, led by Finance Minister Nirmala Sitharaman, is likely to introduce new GST rate slabs around September 22. The move is aimed at boosting festive demand in India.

The implementation is expected to coincide with the Navratri celebrations.

A meeting of the GST Council will be held on September 3-4 in New Delhi to discuss the proposed two-rate structure of 5% and 18%.

Notifications for new GST rates within 5-7 days
Implementation timeline

Notifications for the new GST rates are likely to be issued within five to seven days after the Council's decision.

The Group of Ministers (GoM) on rate rationalization, compensation cess, and health and life insurance had met earlier this week.

They had tentatively agreed to the Centre's proposal for a two-slab GST system.

This is part of a larger effort by PM Narendra Modi's government to simplify India's tax structure and boost economic growth.

Proposed 2-rate GST structure
Tax categories

The proposed two-rate GST structure would classify goods and services into 'merit' (5%) and 'standard' (18%) categories.

A special 40% rate would be levied on select luxury and sin goods such as alcohol and tobacco.

Some labor-intensive items will continue to enjoy concessional rates as low as 0.1%, 0.3% or 0.5%.

This is to support employment-intensive sectors in the country, furthering the government's goal of promoting job creation through tax policy.

PM Modi's Independence Day address on upcoming GST reforms
Reform goals

On Independence Day 2025, PM Modi had announced the upcoming GST reforms, dubbed 'GST 2.0.'

He called GST one of the biggest reforms since its introduction in 2017 and stressed the need for rationalization to provide relief to common people, farmers, middle-class citizens, and MSMEs.

Sitharaman has also said that the new GST regime will make people self-sufficient and boost growth in manufacturing and MSMEs.