The central government is reportedly contemplating a major revamp of the Goods and Services Tax (GST) regime. According to official sources, a key proposal under consideration is to either reduce the 12% GST slab to 5% for select essential commodities or eliminate the 12% slab entirely.
The items in question predominantly include everyday necessities that form the backbone of spending for India’s middle-class and economically weaker sections. By reclassifying these goods under the lower 5% GST slab, the government hopes to alleviate consumer expenses and contain inflation.
Sources suggest that the proposal will be discussed at the upcoming 56th GST Council meeting, expected to take place later this month. The Council, chaired by the Union Finance Minister and comprising state finance ministers, holds the authority to recommend rate changes under India’s indirect tax framework.
Given the timing—just ahead of the election season—the move is being seen as both economically and politically strategic. Experts believe such a step could make household staples significantly more affordable while signalling the government’s responsiveness to rising living costs.
If implemented, the decision would mark one of the most consequential changes in GST structure since its inception in 2017.
