The GST Council, in its 25th meeting held on 18 January 2018 in New Delhi under the chairmanship of the Union Finance Minister, recommended wide-ranging changes in GST and IGST rates along with key clarifications on the taxation of several goods, with the objective of rationalising rates and providing relief to consumers and industry. The Council approved significant reductions in GST from 28 percent to 18 percent on items such as old and used motor vehicles sold on margin basis and bio-fuel-run public transport buses, while other categories of used vehicles were proposed to be taxed at 12 percent. Several essential and agriculture-linked goods including sugar boiled confectionery, fertilizer-grade phosphoric acid, biodiesel, bio-pesticides, bamboo-based building materials, drip irrigation systems, and mechanical sprayers were recommended for reduction from 18 percent to 12 percent. Further relief was extended by lowering GST to 5 percent on items such as tamarind kernel powder, mehendi paste, domestic LPG supplied by private distributors, articles of straw and basketware, and critical scientific and satellite-related equipment. Diamonds and precious stones were proposed to be taxed at a concessional rate of 0.25 percent, while certain items such as vibhuti, parts for hearing aids, and de-oiled rice bran were fully exempted. The Council also approved selective rate increases, including raising GST on cigarette filter rods from 12 percent to 18 percent and on rice bran from nil to 5 percent. Compensation cess exemptions were recommended for ambulances and used vehicles, and IGST on satellite and space-related equipment was proposed to be reduced to 5 percent. Additionally, clarifications were issued to resolve classification and valuation issues relating to LPG feedstock, railway supplies, and coal rejects. These recommendations were to be implemented through notifications with effect from 25 January 2018, reflecting the Council’s continued effort to simplify GST, reduce anomalies, and support key sectors of the economy.