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Upcoming GST reforms will ensure open, transparent economy: FM Sitharaman ahead of GST council meet

02 Sep 2025 BT Business Todayadmin

The GST Council is expected to deliberate on India’s next-generation GST reforms, including rationalisation of tax rates, simplification of compliance, and structural corrections, ahead of an October rollout.

Union Finance Minister Nirmala Sitharaman-led GST Council is set to hold a crucial two-day meeting in New Delhi from 3–4 September 2025. The Council is expected to deliberate on India’s next-generation GST reforms, including rationalisation of tax rates, simplification of compliance, and structural corrections, ahead of an October rollout. Officials have indicated that the new GST model may feature a two-slab system, with one bracket ranging from 0–5% for essential items and another from 12–18% for the majority of goods, along with a steep 40% “sin tax” on demerit products like tobacco and gutka.

Speaking at the 120th Foundation Day celebrations of City Union Bank, Sitharaman highlighted that the GST reforms aim to make the economy “absolutely open and transparent” while reducing the compliance burden for businesses, particularly small enterprises. She noted that Prime Minister Narendra Modi has set up a Task Force for next-generation reforms, focused on simplifying regulations, lowering costs, and creating an enabling ecosystem for startups, MSMEs, and entrepreneurs.

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