Finance Minister Nirmala Sitharaman will present the Centre’s proposal on GST rate rationalisation before the Group of Ministers (GoM) during a two-day meeting starting August 20 at Vigyan Bhawan, New Delhi. The meeting, chaired by Bihar Deputy Chief Minister Samrat Choudhary, will take place on August 20 and 21, beginning at 12 noon, according to official sources.

The six-member state panel will deliberate on the Union government’s plan to move towards a two-slab GST structure. The GST Council is expected to review the comprehensive rate restructuring during its meeting scheduled for September 18-19.

Brokerage firms Jefferies and Morgan Stanley predict that rationalising GST slabs could create a positive growth cycle. Lowering tax rates on consumer durables and other goods might boost consumption, though the timing and extent of cuts remain uncertain.

Morgan Stanley noted that the retail health and life insurance segments could benefit the most, naming SBI Life, HDFC Life, and ICICI Lombard as key players. Improved affordability could make insurance products more appealing to lower-income customers, while existing customers may see increased cross-selling opportunities.

Jefferies anticipates a simplified GST structure and suggests a likely reduction in tax rates on cement, two-wheelers, and air conditioners from 28% to 18%. Additionally, processed foods, footwear, and garments may also see reduced rates, though passenger cars are expected to remain outside these changes.