New Delhi [India], September 2 (ANI): The 56th meeting of the Goods and Services Tax (GST) Council is set to begin in the national capital tomorrow, spanning two days from September 3 to 4.

Expectations are running high as the Council is likely to decide to streamline the indirect tax regime by reducing the current four GST slabs to just two, in a move aimed at simplifying compliance and enhancing efficiency.

According to government sources, the Central Government proposes to eliminate 12 per cent and 28 per cent GST rates, retaining only 5 per cent and 18 per cent GST rates.

Government sources said that as part of the initiative, 99 per cent of the 12 per cent slab are proposed to be moved to the 5 per cent slab, and 90 per cent of items in the 28 per cent slab are proposed to be moved to the 18 per cent slab.

The announcement for the GST council meet came days after Prime Minister Narendra Modi announced during his Independence Day Speech that people were going to get a very big gift on Diwali and the government had embarked on a 'big reform of GST'.

Speaking in Chennai today, Union Finance Minister Nirmala Sitharaman said that the upcoming next-generation Goods and Services Tax (GST) reforms will further simplify tax processes and reduce compliance burdens, particularly for small businesses.

'The planned rollout of the next generation of GST reforms with a council meeting tomorrow and the day after,' Sitharaman said, adding that in the coming months, there will be further reduction in compliance burden, making it easier for small businesses to thrive.

According to the sources, the consumer goods kept in the 28 per cent slab are proposed to be moved to the 18 per cent slab. They also said that a new slab of 40 per cent is proposed for 'sin goods' like tobacco and pan masala.

On August 21, the Group of Ministers (GoM) extended its support to the Centre's proposals to eliminate the 12 per cent and 28 per cent slabs under the Goods and Services Tax (GST) structure.

According to Bihar Deputy Chief Minister Samrat Choudhary, the proposal to remove the two slabs was deliberated upon during the meeting and received general support. (ANI)