GST Council Meeting Live: GST reforms may reduce J&K revenue by 10-12%, severely impacting fiscal position, says CM Omar Abdullah
Jammu and Kashmir Chief Minister Omar Abdullah on Wednesday
said that the proposed GST reforms could reduce the UT's revenue by 10-12 per cent, adding to the severe fiscal crisis as its public revenues have "collapsed" in the aftermath of the Pahalgam terror attack.
In his written speech circulated at the 56th GST Council meeting .
"The major sectors of the economy, like
- tourism,
- transport,
- construction,
- automobiles have come to standstill post April 2025. T
September 03, 2025· 19:20 IST
GST Council Meeting Live: GST on footwear, apparels priced at Rs 2,500 cut to 5 pc
The GST Council is likely to have approved lowering the GST rate on footwear and apparel priced up to Rs 2,500 to 5 per cent, sources said on Wednesday.
Currently, footwear and apparel priced up to Rs 1,000 are taxed at 5 per cent. Beyond the threshold, 12 per cent Goods and Services Tax (GST) is levied.
The 56th GST Council, chaired by Union Finance Minister Nirmala Sitharaman and attended by state counterparts, decided to raise the threshold for footwear and apparel in the 5 per cent slab to Rs 2,500/ piece, from Rs 1,000/piece.
GST Council on Wednesday decided to do away with the 12 and 28 per cent slab and move the majority of the items from these slabs to 5 and 18 per cent respectively.
eptember 03, 2025· 19:12 IST
GST Council Meeting Live: GST Council approves dual tax rate structure of 5% and 18%: Source
The GST Council on September 3 approved a dual tax rate structure of 5 percent and 18 percent, removing the slabs of 12 percent and 18 percent, highly placed sources told Moneycontrol.
The two-day meeting of the top tax panel began on September 3 and will conclude on September 4. The meeting is chaired by Union finance minister Nirmala Sitharaman.
September 03, 2025· 17:33 IST
GST Council Meeting Live: Some states ask Centre to provide revenue-loss estimate
Three Opposition-ruled states have asked the Central government to provide an estimate for the likely loss from rate restructuring of Goods and Services tax regime, CNBC-TV18 reported. Karnataka, Punjab and West Bengal asked Centre to provide the likely loss estimation and expressed concerns over revenue protection, the report said.
The channel said Telangana and Sikkim may also have expressed similar apprehensions.
September 03, 2025· 17:24 IST
GST Council Meeting live: MSME registration soon to be done in three days
New measures would make registration for MSMEs
possible within three days , which takes multiple weeks at present, sources told Moneycontrol.
Big relief for taxpayers as health insurance, life-saving drugs to get cheaper
In a big relief for taxpayers,
the GST Council is likely to agree to cut rates on insurance premiums, making policy covers cheaper. The Council may also agree to cut rates for life-saving drugs, government sources said.
September 03, 2025· 16:12 IST
Opposition-ruled states ask for compensation for revenue loss
India’s eight opposition ruled states have asked the Central government
to compensate for the revenue loss that might happen if the proposal to rationalize the goods and services tax (GST) structure is passed in the ongoing GST Council meeting being held on September 3 and 4, sources told Moneycontrol.
The states are Himachal Pradesh, Jharkhand, Kerala, Punjab, Tamil Nadu, Telangana and West Bengal and Karnataka.
September 03, 2025· 16:10 IST
Refunds stuck for pharma, textiles, chemical, fertilizer industry to be fast-tracked
The GST Council agreed to clear refunds stuck under inverted duty structure for textiles, pharma, chemical, fertilisers and other industries in seven days, CNBC-TV18 said citing sources.
September 03, 2025· 15:17 IST
GST Council begins talks on rate rationalisation
The GST Council has begun its discussion on rates rationalisation
and on proposals to cut levies on life and and health insurance premiums, CNBC-TV18 reported.
September 03, 2025· 14:19 IST
Insurance talks focus on rate rationalisation; Notifications expected by third week of September
Insurance discussions underway with focus on rate rationalisation.
Rate notifications likely by the third week of September.
GST Council proposes to bring in automatic return filing, CNBC-TV18 reports
GST Council Proposes To Bring In Automatic Return Filing
GST Council Proposal To Reduce Compliance Issues Under Discussion
Alert: Ease Of Compliance Is One Of The 4-Pillar Strategies Pointed Out In GST 2.0 Vision
GST Council Currently Discussing Challenges In Registration & Refunds
September 03, 2025· 12:35 IST
What's happening in EV segment
Leading electric vehicle makers — including Tata Motors, Mahindra & Mahindra, JSW MG Motor, BYD, Mercedes-Benz, BMW, and the newly arrived Tesla —
may soon face a major hurdle in sales, according to a Reuters report. The upcoming GST Council meeting is expected to take up a proposal to hike the tax rate on luxury EVs priced above Rs 20 lakh, raising it from the current 5% to 18%. The recommendation, put forward by the GST rationalisation group of ministers (GoM), has already sparked strong opposition from EV manufacturers, even though a final decision will only be made after the Council’s September 3–4 deliberations.
September 03, 2025· 11:48 IST
GST Council Meeting Live: Indian Beverage Association seeks GST relief on aerated drinks
The Indian Beverage Association has urged the Finance Ministry
to reduce GST on aerated beverages to 18%, highlighting that the sector has attracted investments worth Rs 85,000 crore, contributes to job creation, and supports rural demand.
September 03, 2025· 11:09 IST
GST Council Meeting Live: Health and life insurance premiums in focus
The GoM has also proposed exempting health and life insurance premiums from GST.
While this would be a major relief for policyholders, Telangana Deputy Chief Minister Mallu Bhatti Vikramarka warned that such an exemption could cost the exchequer nearly Rs 9,700 crore annually.
September 03, 2025· 11:08 IST
GST Council Meeting Live: Revenue loss a key concern
Bihar Deputy Chief Minister Samrat Choudhary confirmed that the GoM has endorsed the Centre’s dual-structure model of 5% and 18%. However, moving items from the 12% slab to 5% is projected to result in an annual revenue loss of about Rs 80,000 crore for both the Centre and states.
September 03, 2025· 11:08 IST
GST Council Meeting Live: Average GST rate may drop below 10%
Currently, the average GST incidence on goods is around 11.5%.
With the proposed restructuring, this could fall to under 10%, offering broad-based relief to consumers.
175 items may get cheaper
If approved, the GoM’s proposal could bring GST cuts for nearly 175 products.
These include
- processed foods,
- dry fruits such as almonds,
- packaged snacks,
- jams,
- ghee,
- butter,
- pickles, chutneys, murabba, as well as
- big-ticket items like automobiles, tractors, refrigerators, air conditioners, and other electronics.
Dual-slab GST structure proposed
As per the Centre’s plan, cleared by the Group of Ministers (GoM) last month, GST will transition to a dual-rate structure.
Most items in the 28% slab (excluding sin goods) would move to 18%, while goods in the 12% slab would drop to 5%. A 40% slab will remain in place for 6–7 sin and demerit goods.
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