The next meeting of the Goods and Services Tax (GST) Council may not take place before late May or June, as state governments remain occupied with their respective budget sessions and legislative processes, delaying the Centre’s efforts to fix a date for the 56th Council meeting, sources familiar with the matter told.
Read Also: New GST Mandates from April 2025: MFA, E-Invoicing & More
Experts noted that industries are awaiting decisions on “clarifications on post-sale discounts, broader coverage under amnesty schemes, extension of compensation cess, taxability of services tied to food delivery platforms,” as well as discussions on slab reduction and rate rationalisation.
Experts also said the multiplicity of tax rates remains a sticking point. “This is an issue about which there has been constant criticism, where everybody has an opinion — and we still do not know what the Council thinks about the issue,” one policy watcher noted. While a Group of Ministers (GoM) has submitted an interim report on rate rationalisation, observers believe a holistic discussion must occur at the Council level. There are also calls for a dedicated session focused solely on this matter.
Read Also: GST Invoice Furnishing Facility (IFF): Features, Updates & Filing Guide
Despite the Council’s earlier success in streamlining GST through various reforms, experts say momentum has faded. “Regulation 6 of the ‘Procedure and Conduct of Business Regulations of the GST Council’ stipulates that the Council is to meet at least once in every quarter. However, since June 2022, the frequency of such meetings has spiralled down,” said an expert who declined to be named.
Expert, added, “The good work done so far by the GST Council needs to continue by conducting regular meetings to immediately address key concerns such as introduction of sectoral focus committees, levy of GST on virtual digital assets… practical implementation of Section 11A, and reduction of GST rates in the health and life insurance sector.”
The industry is also seeking reform in exemptions, with many experts arguing that they disrupt value chains and invite lobbying. The Council, they suggest, should take a broader view and minimise exemptions to uphold the GST’s core principles.
Read Also: Key Financial and Regulatory Changes Taking Effect from March 1, 2025
Other compliance-related concerns remain unresolved. These include delays in GST registration, despite recent CBIC circulars, and refund delays, which continue to frustrate businesses. Experts suggest that interest on delayed refunds should be standard practice and data from states and CBIC should be reviewed to ensure timely processing.
On the long-pending issue of GSTAT, stakeholders say that even after the appointment of a President in May 2024, delays in appointing members continue to stall the tribunal’s operationalisation, increasing litigation costs and taxpayer uncertainty.
The divergence in Advance Rulings (AARs) across states has further muddied the waters. Experts argue for the creation of a National Authority for Advance Rulings, to prevent conflicting interpretations and ensure legal consistency.
The 55th GST Council meeting was held in December 2024 in Jaisalmer. Since then, discussions on GST rates for insurance, real estate, gaming, and other sectors remain pending. With rising pressure from stakeholders, the government is now expected to convene the next meeting no later than June 2025, according to sources.
Disclaimer: The article or blog or post (by whatever name) in this website is based on the writer’s personal views and interpretation of Act. The writer does not accept any liabilities for any loss or damage of any kind arising out of information and for any actions taken in reliance thereon.
Also, www.babatax.com and its members do not accept any liability, obligation or responsibility for author’s article and understanding of user.
For Collaborating with us-
- Mail us at [email protected]
- Whatsapp us at +91-7024984925
