GST Council approves 5% and 18% for most items; new rates to be implemented from Sept 22

The GST Council has approved rate rationalisation, introducing a two-slab structure with 5% and 18% as standard rates, along with a 40% special rate for sin goods. Uttar Pradesh Finance Minister Suresh Khanna told Business Today TV that the Council has decided to abolish the 12% and 28% slabs, shifting most items into the 5% and 18% categories. The changes will take effect from September 22.

The two-day meeting of the apex tax panel, chaired by Union Finance Minister Nirmala Sitharaman, began on September 3 and will conclude on September 4.

Eight opposition-ruled states have urged the Centre to compensate for potential revenue losses if the proposal to rationalise the Goods and Services Tax (GST) structure is approved at the ongoing GST Council meeting. The states include Himachal Pradesh, Jharkhand, Kerala, Punjab, Tamil Nadu, Telangana, West Bengal, and Karnataka. After the meeting, Jharkhand Finance Minister Radha Krishna Kishore said, "We have asked for an additional levy; the Centre said they will consider."