Wed Sep 03 05:30:00 UTC 2025: Okay, here’s a news article summarizing the GST Council meeting, based on the provided text:

**GST Council Mulls Major Slab Overhaul: Essential Goods Could Get Cheaper**

**New Delhi:** The 56th Goods and Services Tax (GST) Council meeting, chaired by Finance Minister Nirmala Sitharaman, began today in New Delhi with discussions centered on a significant restructuring of GST slabs and simplification measures. The two-day meeting is expected to result in revised tax rates on a wide array of goods, potentially impacting prices for consumers.

Sources suggest that the government is considering reducing GST on approximately 175 items, with some seeing cuts of at least 10%. A major proposal is to consolidate the current four-slab structure (5%, 12%, 18%, and 28%) into a simplified two-slab system: 5% for essential goods and 18% for non-essential items. Furthermore, a potential 40% “sin tax” could be levied on items like tobacco and high-end cars priced at ₹50 lakh or more.

If approved, a large number of items currently in the 12% bracket, such as butter, fruit juices, and dried fruits, could move to the 5% slab. Other commonly used items like ghee, nuts, drinking water (20 liters), namkeen, certain shoes and clothing, medicines, and medical equipment are also likely candidates for a shift from 12% to 5%. Everyday items like pencils, bicycles, umbrellas, and hairpins may also benefit from the lower 5% tax rate.

The proposed changes could also affect personal care products like toothpaste, shampoo, and soaps, along with dairy products and ready-to-eat foods.

Electronics such as TVs, washing machines, and refrigerators could see price reductions, as they might be moved from the 28% to the 18% tax bracket. The council is also considering revising taxes on vehicles, potentially lowering the rate on entry-level cars to 18% while increasing it to 40% for SUVs and luxury vehicles.

The shift of nearly all food and textile products to the 5% slab is expected to benefit major consumer goods companies like Hindustan Unilever, Godrej Consumer Products, and Nestle India.

However, not all changes point to lower taxes. Reports suggest the GST Council may consider increasing the tax on electric vehicles priced between ₹20-40 lakh from the current 5% to 18%. Luxury electric car manufacturers like Tesla and BYD could face even higher tax rates.

The Council will continue deliberations tomorrow, and final decisions on the proposed changes are expected to be announced shortly. The outcome of this meeting could have a significant impact on consumer spending and the overall economy.

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