New Delhi, Aug 22 (PTI) The high-powered GST Council, chaired by Finance Minister Nirmala Sitharaman, will meet on September 3-4 to discuss moving to a two-slab taxation.

In an office memorandum, the GST Council Secretariat said the two-day meeting will be held in New Delhi.

The council, comprising finance ministers of all states and UTs besides the Centre, will deliberate on the recommendations by the three GoMs on rate rationalisation, compensation cess and health and life insurance.

The Group of Ministers (GoM) comprising state ministers met earlier this week and, in principle, agreed to the Centre's proposal for a two-slab GST.

According to the reform proposed by the Centre to the GoMs, Goods and Services Tax (GST) should be a two-rate structure of 5 and 18 per cent, classifying goods and services as 'merit' and 'standard'. A special rate of 40 per cent will be levied on select few items like ultra-luxury cars and sin goods.

Currently, GST is a 4-tier structure of 5, 12, 18 and 28 per cent. PTI JD BAL BAL

Two-slab GST structure proposed, classifying supplies as merit and standard with a special rate for luxury goods. The GST Council will deliberate a Centre-proposed shift to a two-slab GST with rates of 5% and 18%, classifying supplies as 'merit' and 'standard', and a special 40% rate on select ultra-luxury and sin items. The meeting will also consider Group of Ministers' recommendations on rate rationalisation, the compensation cess framework, and taxation of health and life insurance, contrasting the proposal with the existing four-tier GST structure of 5%, 12%, 18% and 28%.