GST Council July 2025 Meet: 12% Slab and Intermediary Services
Why in the news
Officials said the GST Council would meet in July 2025 after a break of more than six months, with big reforms on the table.
Key facts
- The Council is chaired by the Union Finance Minister with state finance ministers as members.
- Current tiers: 5%, 12%, 18%, 28%; the 12% slab may be cut or removed, folded into 5% or 18%, in line with rate rationalisation.
Agenda
| Item | Details |
|---|---|
| 12% slab | Merge to simplify the structure |
| Service intermediaries | Final clarity on tax treatment; may revisit place-of-supply rules or tax on exports of intermediary services |
Implications
- Fewer slabs mean fewer classification disputes and easier business.
- Clarity could relieve outsourcing, fintech and consulting by thousands of crores and boost exporters’ competitiveness.
Exam angle
- Council head: Union Finance Minister.
- Issue: intermediary services.