New Delhi25 minutes ago
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The Compensation Cess 2017 was deployed to meet the revenue loss of the states when GST started.
The GST Council’s 56th meeting to be held on 3-4 September 2025 will be considered to be closed by 31 October 2025.
According to the Money Control report, the centers can plan to distribute the cess of the remaining 2,000 to 3,000 crore rupees by half.
The Compensation Cess 2017 was deployed to meet the revenue loss of the states when GST started. This cess is taken on tobacco, cold drinks and expensive vehicles.
Compantion cess was extended to repay the loan
The central government had taken a loan of ₹ 2.69 lakh crore to help the states during Kovid-19. The Compensation Cess was extended by March 2026 to repay this debt.
Due to the strong GST collection, the government is on the way to repay this loan by October 2025. In such a situation, in the next meeting, the GST Council will decide whether the cess is completely removed or included in the GST slab.
Slabs of 12% and 28% will end
The GST Council meeting may have a decision to reduce the GST slab. Slabs of 12% and 28% of GST can be approved. If this happens, only two slabs of GST will be 5% and 18%. Luxury items will come under 40%.
Currently 4 slabs of GST are 5%, 12%, 18%, and 28%. With this, GST Council’s Group (GOM), held on August 21, approved the abolition of 12% and 28% slabs of GST.
PM Modi announced GST reforms on Independence Day Prime Minister Narendra Modi had told the Red Fort on Independence Day that this year Diwali is going to get a big gift. We are bringing Next Generation GST Reforms. Will reduce tax for ordinary people, everyday things will become cheaper, people will benefit greatly.
Prime Minister Narendra Modi announced GST Reforms on Independence Day.
These goods will be cheap: Tax on these will be 12% to 5%
According to the expert, dried fried nuts, branded salty, tooth powder, toothpaste, soap, hair oil, normal antibiotics, painkillers, processed food, snacks, frozen vegetables, condensed milk, some mobiles, some computers, sewing machines, pressure cookers, gays will be cheaper.
Apart from these, no electricity water filters, electric iron, vacuum cleaner, readymade clothes of more than 1000 rupees, shoes with a range of 500-1000 rupees, most vaccines, HIV/TB diagnostic kits, bicycles, utensils will also be taxed.
Products such as geometry boxes, maps, globes, glazed tiles, pre-fabricated building, vending machines, public transport vehicles, agricultural machinery, solar water heater also come in 12% tax slab. After approval of two slabs, they will be charged 5% tax.
These goods will also be cheap: Tax on these will be 28% to 18% Cement, beauty products, chocolate, ready-mix concrete, TV, fridge, washing machine, AC, dishwasher, private aircraft, protein concentrates, sugar syrup, coffee concentrates, plastic products, rubber tires, aluminum foil, temporary glass, printers, razor, manner kitted, dental kitte, dental kitte, dental kitte.
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