Will Centre announce an Onam gift soon? crucial meeting to take place today and tomorrow

NEW DELHI: The crucial two-day meeting of the GST council will begin today in Delhi. It is believed that massive decisions, including a possible overhaul of the current GST slabs, will be taken during the meeting. Earlier, reports had claimed that the Centre may announce significant tax relief, including a reduction in GST on various products, including essential items. The Centre will also consider the proposal to exempt life and health insurance premiums from GST.

According to reports, the prices of 90 per cent of essential items will come down due to the GST slab reforms. This would bring direct relief to households, especially ahead of the festive season. Union Minister Nirmala Sitharaman may announce the decisions tomorrow evening after the meeting. The revised tax structure is likely to be implemented this month itself, ensuring that consumers feel the impact in the Diwali market. The Centre has already hinted at a “massive Diwali gift” for the people, and these reforms are being seen as part of that promise. With Assembly elections approaching in several states, including Kerala, in a few months, the BJP is aiming to secure as many seats as possible in those states. The party believes that easing prices will help it consolidate voter support.

However, opposition-ruled states have raised concerns that the proposed changes could severely dent their revenues. They argue that while consumers may benefit, states could face substantial losses and are urging the Centre to come up with a compensation mechanism.