Group of ministers to meet next week on GST reforms amid tight timeline for council approval

The Group of Ministers (GoM) on Rate Rationalization is set to convene next week to discuss the proposed next-generation GST reforms introduced by Prime Minister Modi during his Independence Day address.

The group comprises of ministers from six states including Kerala, Uttar Pradesh, Rajasthan, West Bengal, Bihar, and Karnataka and will review the scheme proposed by the Union Finance Ministry.

The reform framework aims to simplify India’s multiple GST slabs into a streamlined structure. It proposes two standard rates —5% and 18% — to categorize most goods and services, while maintaining a special 40% rate for sin and luxury items such as pan masala and tobacco.

The Finance Ministry sources indicated confidence that the GoM and the GST Council would support the reform. Projections show that under the new two-tier structure, gross GST revenues would remain stable.

Complementing the rate rationalization, the reform package includes process improvements such as pre-filled returns, faster automated refunds, and streamlined GST registration to reduce complexity and enhance user experience.([turn0search3])

These reforms signal a transition to what has been dubbed “GST 2.0”, which government insiders describe as a “game changer” that may pave the path toward a single tax rate in the long term.

Given the scale of change, timing is pressing. Multiple sources confirm the goal is to push the reformed GST through the GST Council by Diwali (October), in sync with the Prime Minister’s promise.