The 56th meeting of the GST Council, chaired by Finance Minister Nirmala Sitharaman, took place in Delhi on Wednesday. Several proposals were approved during the meeting, and the Finance Minister announced significant changes regarding Goods and Services Tax (GST). The council has abolished the existing 12% and 18% tax rates, and now only two tax slabs, 5% and 18%, have been approved. The new rates will be implemented from September 22nd.
Sitharaman explained that the GST Council agreed on a two-rate GST system. The 12% and 28% tax slabs have been eliminated, with a consensus reached on the new 5% and 18% rates. She emphasized that the middle class will benefit the most from these changes, with essential items for the common man being moved from the 12% and 18% brackets to 5%. Items taxed at 5% have been reduced to zero percent.