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GST Council approves reforms with a multi-sectoral and multi-thematic focus on improving the lives of all citizens and ensuring ease of doing business for all, including small traders and businessmen
56th GST Council meeting held in New Delhi on 3 September 2025, chaired by Finance Minister Nirmala Sitharaman, approved broad reforms to streamline India’s GST framework. The Council recommended a rationalisation of rates into a simpler structure: a standard rate of 18%, a merit rate of 5%, and a special demerit rate of 40% for select goods and services. Key rate reductions …
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Pan Masala, gutkha, cigarettes, chewing tobacco products like zarda, unmanufactured tobacco and bidi will continue at the existing rates of GST and compensation cess where applicable, till loan and interest payment obligations under the compensation cess account are completely discharged.
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Key recommendations of 56th GST Council meeting Executive summary The introduction of Goods and Services Tax (GST) in 2017 was a landmark reform, unifying India’s complex indirect tax system consisting of multiple taxes into a single GST. While its rollout was a major achievement, evolving business needs soon called for further simplification.
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