The 56th meeting of the GST Council, held in New Delhi under the chairpersonship of Union Finance Minister Smt. Nirmala Sitharaman, approved a wide-ranging set of reforms aimed at simplifying the GST structure, reducing the tax burden on the common man, and improving ease of doing business. The Council endorsed a shift from the existing four-tier rate system to a simplified two-rate structure, with a standard rate of 18 percent and a merit rate of 5 percent, along with a demerit rate of 40 percent for select goods and services. Significant relief was announced through complete GST exemption on all individual life and health insurance policies, including policies for senior citizens, to improve affordability and insurance coverage. GST rates were substantially reduced or eliminated on a large number of essential goods, including food items, household products, agricultural machinery, labour-intensive goods, cement, medical devices, and life-saving drugs. Several consumer durables, vehicles, and renewable energy devices also saw rate reductions. On services, lower GST rates were approved for hotel accommodation, beauty and wellness services, and other commonly used services. The Council also recommended process reforms, phased implementation of rate changes from 22 September 2025, and operationalisation of the GST Appellate Tribunal to strengthen dispute resolution and taxpayer confidence.