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The Goods and Services Tax Council, chaired by Finance Minister Nirmala Sitharaman, is expected to roll out the new GST tax slabs by September 22, government sources have told NDTV Profit.
The implementation of the new GST rates is likely to coincide with the Navratri celebrations.
Prime Minister Narendra Modi announced on August 15 to bring "next-generation" GST reforms that will reduce the tax burden across the country.
"The government will bring next-generation GST reforms, which will bring down the tax burden on the common man. It will be a Diwali gift for you," he said while addressing the nation on the 79th Independence Day.
The GST Council, comprising finance ministers of all states and UTs besides the Centre, will meet on September 3-4 in Delhi to discuss the proposed simplified two-tier GST tax slab of 5% and 18% suggested by the Centre.
The notifications will begin rolling out nearly five to seven days after the GST Council's decision, sources said.
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According to the reform proposed by the Centre to the Group of Ministers (GoM), GST should be a two-rate structure of 5 and 18 per cent, classifying goods and services as 'merit' and 'standard'. A special rate of 40 per cent will be levied on select few items like ultra-luxury cars and sin goods.
Currently, GST is a 4-tier structure of 5, 12, 18 and 28 per cent.
The Centre has said the GST reforms are focused on three pillars - structural reforms, rate rationalisation, and ease of living - in line with the government's push to make India "atmanirbhar" (self-reliant), while also aspiring to become the third-largest economy in the world.
The first pillar - structural reforms - would include inverted duty structure correction in specific sectors, resolve classification issues, and provide stability and predictability.
The second pillar - rate rationalisation - aims to reduce taxes on items used by the common man as well as aspirational goods. It would ensure a greater rate stability and reduce the tax slabs.
The third pillar - ease of living - will simplify registration of startups, implement pre-filled returns, and ensure a faster refund process.
