Wed Sep 03 17:23:21 UTC 2025: Okay, here’s a summary and news article based on the provided text:

**Summary:**

On September 3, 2025, the 56th GST Council meeting in New Delhi concluded with a decision to overhaul India’s Goods and Services Tax (GST) structure. Union Finance Minister Nirmala Sitharaman announced that the council approved a move to a two-rate system, effective September 22nd, focusing on benefits for the common citizen. Key changes include the elimination of the 12% and 28% slabs, retaining the 5% and 18% slabs, and potentially introducing a 40% rate. Essential goods used by the common man are slated for a reduction to the 5% slab. Prior to the meeting, state finance ministers raised concerns about potential revenue shortfalls and presented counter-proposals. The Telugu Desam Party expressed support for the central government’s proposals.

**News Article:**

**GST Overhaul: Council Approves Two-Rate System, Promises Relief for Common Citizen**

*New Delhi, September 3, 2025* – In a move hailed by the government as a boon for the common man, the Goods and Services Tax (GST) Council today approved a significant restructuring of the tax system, shifting to a two-rate system. The decision was announced by Union Finance Minister Nirmala Sitharaman following the 56th GST Council meeting held in New Delhi. The changes are slated to take effect on September 22nd.

“These reforms have been carried out with a focus on the common man,” stated Sitharaman during a press briefing. “Every tax levied on a common man has gone through a rigorous looking into, and in most cases, the rates have come down.”

The approved changes include the elimination of the 12% and 28% GST slabs, retention of the existing 5% and 18% slabs, and consideration of a potential new 40% rate. Perhaps most significantly, the council has agreed to lower the GST on essential items frequently used by the average Indian consumer. Products such as hair oil, soap, shampoo, toothbrushes, toothpaste, bicycles, tableware, kitchenware, and other household articles will be moved to the 5% tax bracket.

The proposal, initially put forth by the central government on Independence Day, aims to streamline the GST structure and provide targeted relief to specific sectors. The government has stated that the rationalization will benefit “the common man, women, students, middle class, and farmers.”

However, the road to agreement was not without its bumps. Finance Ministers from several states, including Himachal Pradesh, Jharkhand, Karnataka, Kerala, Punjab, Tamil Nadu, Telangana, and West Bengal, convened before the council meeting to voice concerns about potential revenue shortfalls resulting from the rate cuts. They submitted alternative proposals designed to protect state revenues. These proposals were also discussed during today’s meeting.

Despite these concerns, some political factions expressed support for the changes. The Telugu Desam Party, an alliance partner, voiced their backing for the Centre’s proposals. “As an alliance partner, we are supporting the Centre’s proposal of GST rate rationalization,” stated Andhra Pradesh Finance Minister Payyavula Keshav. “It is in favor of the common man.”

The GST Council’s decision marks a significant shift in India’s tax policy, and its impact on consumers and businesses will be closely watched in the coming weeks and months.

Read More