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56th GST Council Meeting Held in New Delhi, Chaired by FM Nirmala Sitharaman.

National | Dated: 08 Sep 2025

The 56th Goods and Services Tax (GST) Council meeting, chaired by Union Finance Minister Nirmala Sitharaman, Ministry of Finance (MoF), was held from September 2–3, 2025 at Sushma Swaraj Bhawan, New Delhi. The council introduced landmark GST reforms to simplify taxation, boost Ease of Doing Business (EoDB), and reduce burden on households.

🎯 Key Highlights:

  • - The GST Council approved the implementation of a two-slab tax structure of 5% and 18%, replacing the earlier complex four-slab system of 5%, 12%, 18%, and 28%. This new structure will come into effect from September 22, 2025, and is expected to streamline compliance and improve transparency in the taxation regime.
  • - To address luxury consumption and health concerns, the council also introduced a special demerit rate of 40% on items such as tobacco and tobacco-related products, along with select luxury goods. These demerit items will remain outside the standard slab reforms and will be notified separately by the Ministry of Finance (MoF).

💡 Other Important Facts:

  • (i) A major highlight of the meeting was the reduction of GST rates in the food and household sector. Essentials such as Ultra-High Temperature (UHT) milk, pre-packaged and labelled paneer or chena, and all varieties of Indian breads will now attract a 0% tax, a sharp reduction from the earlier 5–18%, directly benefiting consumers.
  • (ii) The education sector has also been given relief through zero tax on core study materials like notebooks, pencils, and sharpeners, previously taxed at 12%. Other learning accessories such as geometry boxes, trays, and school cartons will now attract only 5% GST, making education-related products more affordable.
  • (iii) In the medical sector, the GST Council has reduced rates on 33 life-saving drugs such as Agalsidase Beta, Imiglucerase, and Atezolizumab, along with key diagnostic kits, from 12% to 0%. This move is expected to provide direct relief to patients and healthcare providers, ensuring accessibility of critical medical supplies at reduced costs.

📚 Test Your Knowledge:

Where was the recently held 56th Goods and Services Tax (GST) Council meeting conducted?

Correct Answer: New Delhi

🚀 Quick Recap: