CBIC Cautions Against Speculative Information on GST Rate Changes
The GST Council is set to commence its 56th on the 3rd and 4th of September, 2025 at New Delhi.

Ahead of the 56th iteration of the GST (Goods and Services Tax) Council Meeting, the Central Board of Indirect Taxes and Customs (CBIC) has urged the public and media to refrain from speculating over apparent changes in the GST rate structure.
In an advisory posted on X, the CBIC clarified that all decisions regarding any changes to the existing GST rate structure are taken collectively by the GST Council. The Council comprises representatives from both the Centre and the States.
https://x.com/cbic_india/status/1960270232423223502
The CBIC cautioned that premature speculation could give rise to baseless rumours and effectively cause volatility within the markets.
Also Read: GST Council’s Two-Day Marathon Meet: Key Expectations
The clarification from the Revenue comes at a time when speculative news about major GST reforms are rife. Recent reports suggest that the government is preparing to roll out a renewed two-slab structure by late September, replacing the existing four-tier system which comprises 5%, 12%, 18% and 28% GST rates.
While no official information has been given, sources have indicated that under the proposed framework, most goods and services will fall into either a 5% or 18% category while a higher rate of 40% will be applied to luxury and so-called ‘sin’ goods such as premium automobiles and tobacco products.
At the same time, labour-intensive goods such as handlooms and footwear industry are slated to continue to receive concessional rates as low as 0.1% to 0.5%.
The Group of Ministers (GoM) on rationalisation of GST slabs has also reportedly agreed on scrapping the 12% and 28% slabs, shifting most items into the 5% or 18% categories.
The speculated changes, if put in motion, shall possibly lay the foundation for “GST 2.0” - a move that is poised to simplify compliance, reduce disputes and ease the tax burden on households and small businesses. The government is said to remain optimistic that the renewed changes to the indirect tax structure would stimulate increased demand for goods and services, during the festive season in particular.
In addition, the discussions are expected to cover numerous other subjects such as the compensation cess regime, sector-specific clarifications such as taxation of digital assets and online gaming; and the possible rationalisation of GST on insurance premiums. The upcoming 56th GST Council meeting which is to be held on the 3rd and 4th of September, 2025 at New Delhi is set to be a two-day marathon session where all the relevant these matters shall be discussed and debated.
The CBIC concluded its advisory by reiterating that stakeholders should await official announcements on all regards once the Council meeting is concluded.
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