<h1>Council proposes next-gen GST overhaul: simpler three-tier rates, insurance exemptions, broad reclassifications, phased from 22 September 2025</h1> The Council recommended next-generation GST reforms: a simplified rate structure (standard 18%, merit 5%, select de-merit 40%), exemptions for all individual life and health insurance, widespread rate reductions and reclassifications across goods and services (food, health, agriculture, textiles, electronics, transport, etc.), and phased implementation from 22 September 2025 (with certain tobacco and specified items deferred until compensation cess obligations are discharged). Procedural measures include operationalising the GST Appellate Tribunal, risk-based 90% provisional refunds for inverted duty claims, amendments to valuation/place-of-supply and post-sale discount rules, and simplified GST registration schemes for low-risk and e-commerce suppliers.