All food and textile products may be transferred to a 5 % commodity and services arc: Report

According to what was reported, the GST Board of Commodity and Services will discuss a proposal to transfer all food and textile products to a stab of 5 percent when they meet early next month. The Council can also discuss a plan to reduce goods and services tax on a group of elements including cement, as well as group consumption services such as salon and beauty. The government aims to simplify the tax system and end all classification concerns.

According to a report in Times of India, it is suggested that the commodity and services tax on cement be reduced from 28 percent to 18 percent. This was a long demand for the construction and infrastructure sectors, as well as the final customer costs.

The government also evaluates commodity and services tax rates on some commonly used services to see if it can be reduced to a 5 percent segment of 18 percent. Small salons are exempted from this rate, but medium and lung salons face the tax of goods and services by 18 percent that they transport to customers.

The goods and services tax to ensure the term and health insurance purchased by individuals will be zero in an attempt to increase the penetration of the service. Small cars, which reach 4 meters, will also face 18 percent of the commodity and services tax and the largest 40 percent of the commodity and services tax.

The 56th meeting of the Commodity and Services Tax Council, chaired by Finance Minister Nermalla Setharmann, will be held on September 3 and 4, 2025, in New Delhi. The sessions will start at 11 am. In both days. Before meeting the Council, a meeting of officers is scheduled to be held on September 2, 2025, also in the national capital.

The agenda and the detailed place have not been announced. Government sources said that the center aims to implement the price of commodity and services tax discounts before the Duca-Diwali Festival season. Diwali will be observed on October 21 this year. This step can provide relief to consumers and companies before the festive demand period.

At its meeting on August 21, the GOM Group (GOM) decided to rationalize prices to direct the center’s proposal to obtain the structure of the commodity tax rate and the double services to the Commodity and Services Tax Council. The suggestion includes commodity and services tax rates by 5 percent and 18 percent, to replace the current panels of 12 percent and 28 percent.