GST Council Schedules 57th Meeting to Review Tax Reforms

The GST Council will hold its 57th meeting in New Delhi on September 12, preceded by a preparatory officers' meeting on September 11. Chaired by Union Finance Minister Nirmala Sitharaman, this session marks the first such gathering in over a year and will focus on enhancing compliance and the ease of doing business.

A primary objective is the simplification of registration procedures for large businesses that pass on tax credits exceeding ₹2.5 lakh per month, aiming to resolve inconsistencies between central and state processes. The Council is also expected to consider automating the cancellation of GST registrations. These discussions follow a September 2025 restructuring that replaced the original four-tier tax slab system with a new structure of 5 percent and 18 percent standard rates, alongside a 40 percent rate for sin and ultra-luxury goods.

Additional agenda items include easing restrictions on blocked input tax credit (ITC) under Section 17(5) of the CGST Act, specifically for motor vehicles, health services, and the construction of immovable property. The Council may also review refund norms for accumulated ITC under the inverted duty structure and facilitate the transfer of unutilised ITC across states. To boost demand, members may consider lowering the GST rate on mobile handsets costing up to ₹25,000 from 18 percent to 5 percent. The meeting occurs as the Federation of Automobile Dealers Associations continues litigation in the Supreme Court over approximately ₹2,500 crore in accumulated compensation cess credit.