The Central Board of Indirect Taxes and Customs (CBIC) has issued a cautionary advisory urging the public and media outlets to refrain from speculating on potential changes in Goods and Services Tax (GST) rates. In its statement, CBIC clarified that all decisions on GST rates are made collectively by the GST Council.
“It is kindly requested that speculation on GST rates may be avoided. Decisions in this regard are taken collectively by the GST Council, which comprises of the Centre and States. Premature speculation gives rise to baseless rumours and may cause volatility in the markets. All stakeholders are advised to kindly await the official announcements, which will be made after the GST Council meeting scheduled on 3rd and 4th September, 2025,” CBIC posted on X.
This step is taken to prevent the spread of baseless rumours that may influence market conditions adversely.
The high-powered GST Council, chaired by Finance Minister Nirmala Sitharaman, will convene on September 3-4 in New Delhi to deliberate on key reforms, including a shift to a two-slab GST structure. In an office memorandum, the GST Council Secretariat confirmed that the council will take up recommendations made by three Groups of Ministers (GoMs) on rate rationalisation, compensation cess, and taxation of health and life insurance.
This council includes members from both the central and state governments, ensuring a balanced and comprehensive evaluation of any proposed changes. The CBIC’s advisory aims to reinforce the protocol of awaiting official announcements to safeguard against market disruptions that can result from premature speculation.
Last week, the GoM on rate rationalisation broadly endorsed the Centre’s proposal for a two-tier GST structure.
As per the reform blueprint, GST could be simplified into two slabs of 5% and 18%, classifying goods and services as “merit” or “standard”. Additionally, a special rate of 40% is proposed for select items such as ultra-luxury cars and sin goods. Currently, GST is a 4-tier structure of 5, 12, 18 and 28 per cent.
The council’s discussions are expected to set the stage for one of the most significant changes in GST design since its rollout in 2017.
