The GST Council headed by Finance Minister Nirmala Sitharaman will convene in New Delhi on September 3–4 to discuss a possible move towards a two-slab tax regime. According to an office memorandum the two-day meeting will bring together finance ministers from all states and Union Territories along with the Centre. The agenda includes reports from the three Groups of Ministers (GoMs) on rate rationalisation compensation cess and taxation of health and life insurance. What Will Become Cheaper After 2 GST Slabs? Most everyday items will soon fall under the 5% GST slab making them more affordable. Nearly 99% of items currently in the 12% category are expected to shift to the 5% slab. About 90% of goods under the 28% slab are likely to move down to the 18% slab. Tax rates are set to be reduced on farm equipment handicrafts medicines and insurance services. Certain products that were earlier taxed at 18% may either move to the 5% slab or become tax-free. Items linked to rural employment are also proposed to see lower GST rates. Tougher Tax On Sin Goods Products like tobacco pan masala and about 5–7 other items could face a higher GST of 40%. The Group of Ministers (GoM) comprising state ministers met earlier this week and in principle agreed to the Centres proposal for a two-slab GST. Highlights GST Council Meet In September GST Council Meet Over New Slabs What Are GST 2 New Slabs What Will Get Cheaper After GST New Slabs According to the reform proposed by the Centre to the GoMs Goods and Services Tax (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. (With Inputs From PTI)