Exclusive: GST Council to expand nil slab to cover more goods

The Goods and Services Tax (GST) Council is likely to widen the scope of the nil tax slab, moving a range of essential products from 5% and 18% to zero duty. 

Everyday food items such as UHT milk, pre-packaged paneer (chena), pizza bread, khakhra, chapati and roti will now attract no GST. 

Similarly, paratha and parotta, earlier taxed at 18%, have also been brought under the nil rate as per proposals by the Group of Ministers on Rate rationalisation 

Education-related items are a major beneficiary as well. The Council is likely to exempt maps, hydrographic charts, atlases, wall maps, globes, printed educational charts, pencil sharpeners, pencils of all types (including crayons, pastels, tailor’s chalk and drawing charcoals), along with exercise books, graph books and laboratory notebooks from the 12% slab, bringing them down to nil.

Officials said the move reflects the government’s broader push to rationalise the indirect tax structure by reducing the number of slabs and resolving classification disputes. Expanding the nil rate is expected to bring tangible relief to households and students while making the system simpler and more transparent.

The final decision will be taken up by the 56th GST council in its meeting scheduled next week in New Delhi