With reference to GST 2.0 introduced in September 2025, which of the following is correct? 1. The 12% GST slab was merged into the 5% slab for essential goods. 2. The 28% GST slab was completely abolished for all product categories. 3. The GST Council is a constitutional body established under Article 279A. Select the correct answer:

Explanation

Statements 1 and 3 are correct. The September 2025 GST Council release describes the reform as a move from the earlier four-rate structure to a simpler two-rate structure, with 18% as the standard rate and 5% as the merit rate, plus a special demerit rate for a few goods and services. It specifically lists many reductions from 12% to 5%, including food items, agricultural goods, medicines, medical supplies, renewable-energy devices and other common-use goods. Statement 2 overstates the reform: the 28% rate was not abolished for every category, because some items moved down to 18% while sin or luxury-type categories were retained or treated separately. The GST Council point is constitutional: Article 279A, inserted by the 101st Constitutional Amendment Act, 2016, establishes it.

Why the other options are wrong

• (A) A includes statement 2, but the 28% slab was not completely abolished across all product categories; selected categories were retained or handled separately.
• (C) C omits statement 1, even though the reform included movement of many 12% items into the 5% merit rate for essential and common-use goods, and it also includes the incorrect statement 2.
• (D) D treats all three statements as correct, but statement 2 is too absolute because the 28% rate did not disappear for every category.

Concept

This tests GST rate rationalisation and the constitutional status of the GST Council. It recurs in RAS because taxation reforms link current governance decisions with Article 279A and Centre-State fiscal federalism.

Source

• Press Information Bureau press release hosted by GST Council

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