No GST Rate Change, Council To Focus On Structural Reforms At Upcoming Meet
The GST Council is expected to focus on structural and procedural reforms rather than rate changes during its upcoming meeting. Proposed updates include streamlining refund processes and improving input tax credit rules to increase predictability for businesses.
Why it matters
These reforms aim to reduce the administrative burden on businesses and improve the efficiency of the national tax system.
GST rates are set to remain unchanged at the Council's October 8 meeting, with the 57th GST Council instead expected to focus on a package of procedural and structural reforms covering registration, refunds, input tax credit and enforcement, Finance Ministry sources said.The meeting is not expected to consider any broad rate changes, with only a limited set of rationalisation and clarification issues on the agenda, the sources said.Under the proposals, future GST rate changes could be considered once a year and take effect from April 1, bringing greater predictability to the tax regime.READ | 57th GST Council Meeting Rescheduled For 2nd Time, To Be Held On ThursdayOfficials pointed to the performance of the two-rate GST structure over the past year as supporting rate stability. Between October and July, taxable supplies rose 25.8 per cent year-on-year, while gross tax liability increased 13.6 per cent.
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