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India’s GST Council is expected to consider eliminating the 12% GST slab in its upcoming meeting, aiming to streamline the current five-rate system into four, including a 0% rate.
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The GST Council, comprising Union and state finance ministers, hasn’t met since December 2024 but will likely address rate rationalisation and compliance simplification in its next session.
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Discussions on reducing the number of GST slabs began in September 2024; a previous attempt to reform rates failed during the 2024 Finance Bill deliberations.
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Current GST rates include 0%, 5%, 12%, 18%, and 28%, with additional special rates for precious stones and metals; the proposed shift would remove the 12% slab entirely.
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COVID-19 delayed earlier rate consolidation efforts; the upcoming proposal may also include broader discussions such as potentially bringing fuel under the GST framework for unified taxation.
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