Will Modi's Diwali Gift Be A GST Surprise? Key Council Meeting Begins Today; Big Changes Expected

New Delhi: The 56th GST Council meeting started today in New Delhi. This is a two-day meeting where many important tax decisions can be taken. The meeting is being chaired by Finance Minister Nirmala Sitharaman, and includes finance ministers from all states.

Union Minister for Finance and Corporate Affairs Smt. @nsitharaman chairs the 56th meeting of the GST Council, in New Delhi, today.

The participants included Union Minister for State for Finance Shri @mppchaudhary, Chief Ministers of Delhi, Goa, Haryana, Jammu and Kashmir,… pic.twitter.com/pqz8upYg1U

— Ministry of Finance (@FinMinIndia) September 3, 2025

What Reforms Did PM Modi Promise?

On August 15, Prime Minister Narendra Modi had announced big changes in GST from the Red Fort. He said a new generation GST reform is coming soon. This meeting could make that promise real — just before Diwali, which is why people are calling it "Modi’s Diwali Gift."

Centre proposes to scrap the current slab of 12% and 28% of GST, proposes two rates of structure: 5% and 18% : Govt Sources pic.twitter.com/P7ugrmPFqm

— ANI (@ANI) August 15, 2025

What GST Changes Are Being Discussed?

The Council is thinking of reducing the number of tax slabs. Right now, there are 5 percent, 12 percent, 18 percent, and 28 percent slabs. The plan is to remove the 12 percent and 28 percent slabs and move items into 5 percent or 18 percent.

A new 40 percent slab may also be created for luxury and sin goods like alcohol, tobacco, and high-end cars.

Which Items May Get Cheaper?

Toothpaste, shampoo, talcum powder, and soap may move from 18 percent to 5 percent GST.

- Butter, cheese, and ghee may also become cheaper.

- Electronics like fridge, TV, and AC may see lower GST rates.

- Small cars may be moved from 28 percent to 18 percent GST, helping companies like Maruti Suzuki.

- But electric luxury cars from brands like Tesla and BYD may face higher taxes.

Who Is Attending the Meeting?

Apart from Finance Minister Sitharaman and Minister of State MP Chaudhary, CMs from Delhi, Haryana, Goa, J&K, and Odisha are attending. Deputy CMs from Arunachal, Bihar, MP, and Telangana, as well as the Governor of Manipur, are also present.

#WATCH | Delhi: Union Finance Minister Nirmala Sitharaman is chairing the 56th meeting of the GST Council today. Visuals from the venue. pic.twitter.com/OfZSU369eI

— ANI (@ANI) September 3, 2025

What Did BJP Leaders Say?

BJP MP Praveen Khandelwal said this is a next-gen GST reform under PM Modi’s leadership. He said traders and consumers will both benefit, as the system will become simpler and more transparent.

#WATCH | On 56th meeting of GST Council today and GST two-slab structure proposal, BJP MP Praveen Khandelwal says, "Under the leadership of PM Narendra Modi, this is a major next-generation GST reform. Traders across the country are looking at the meeting. They are hopeful that… pic.twitter.com/PUG5YWSkhv

— ANI (@ANI) September 3, 2025

Will GST Filing Also Get Easier?

Yes. The government may also simplify the registration and filing process for businesses, especially for small companies, to help them grow faster.