Wed Sep 03 16:40:00 UTC 2025: Okay, here’s a news article summarizing the GST Council’s 56th meeting on September 3, 2025:

**GST Council Approves Major Tax Slab Overhaul, Prices Set to Change**

**NEW DELHI, Sept 4, 2025** – The Goods and Services Tax (GST) Council, in its 56th meeting held on September 3, 2025, has approved significant changes to the tax structure, impacting a wide range of goods and services. Finance Minister Nirmala Sitharaman announced the decisions, stating that the revisions are designed to benefit the common citizen, businesses, and farmers alike. The new tax slabs will come into effect on September 22, coinciding with the start of the Navratri festival.

**What’s Getting Cheaper?**

A key highlight of the meeting was the rationalization of the tax slabs. Several essential food items have been moved to the zero GST bracket, including UHT milk, paneer made from chenna, pizza bread, roti, and paratha. Furthermore, individual insurance policies will now be exempt from GST. Education-related supplies, such as pencils, erasers, cutters, and notebooks, will also become tax-free, previously taxed at 12%. A total of 33 life-saving drugs have also been moved to the zero GST rate.

Daily-use items are also set to see a decrease in tax. Products like shampoo, soaps, and oils are now in the 5% GST bracket. Processed foods like namkeen, pasta, coffee, and noodles will also be taxed at the lower 5% rate. Essential healthcare items, such as thermometers and glucometers, will see their GST rate slashed from 18% to 5%. Taxes on cheese and butter will also decrease from 12% to 5%. Fertilizers will also be taxed at the lower rate of 5%, down from 18%. Footwear priced under ₹2500 will now be taxed at 5%.

Furthermore, a major change involves moving several goods previously taxed at 28% to the 18% slab. This will result in price reductions for smaller cars (up to 350cc), motorcycles, and three-wheelers. Air conditioners and refrigerators will also see lower prices due to this change. Home construction will become more affordable, with cement also moving to the 18% GST bracket. Auto parts will also benefit from this change.

**What’s Getting More Expensive?**

While many goods will see a price reduction, some items will face higher taxes. While the council decided to merge the 12% and 28% tax brackets, it also introduced a special 40% GST slab for “sin goods” and super-luxury items. This includes pan masala, cigarettes, gutka, bidis, and other tobacco products. Flavored sugar and caffeinated carbonated beverages will also be taxed at this higher rate, as will private jets.

**Council Consensus**

Finance Minister Sitharaman emphasized that all members of the GST Council have agreed to these changes. The move is expected to stimulate demand, boost economic growth, and provide relief to various segments of the population.

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