Timely GST meetings would bring more certainty to businesses
Prolonged delays erode clarity on tax positions, prolong disputes with tax authorities, and hinder efficient business planning.
- Jul 16, 2025,
- Updated Jul 16, 2025 3:48 PM IST
The last meeting of the Goods and Services Tax Council, which was the 55th meeting was held on December 21, 2024, in Jaisalmer, Rajasthan. However, the subsequent 56th GST Council meeting is yet to be scheduled.
As per the current mandate, the Council is expected to convene once every three months. Since 2022, however, it has met only nine times (from the 47th to the 55th meeting), falling short of the expected 14 to 15 meetings during this period. This inconsistency has raised concerns among stakeholders in trade and industry.
Prolonged intervals between meetings and the absence of regular engagement have contributed to increased uncertainty, particularly around key issues such as rate rationalisation, classification anomalies, compliance challenges, and delays in refunds.
The primary reason for the delay in convening the 56th meeting appears to be the busy legislative and budget schedules of various state governments, which have so far hindered the Centre’s efforts to finalise a date.
The Council in its next meeting is expected to deliberate on restructuring the current GST rate slabs, particularly by reassigning items currently taxed at 12% to either the 5% or 18% categories. Sectors such as pharmaceuticals are likely to be significantly impacted by this shift.
A crucial point of discussion will also be the future of the compensation cess. The Council may consider extending, modifying, or phasing it out entirely. This decision will have substantial implications for state revenues and the overall tax structure.
Several industries—including pharmaceuticals, textiles, footwear, and fertilizers—continue to face challenges due to inverted duty structures, where the GST on inputs exceeds that on finished goods. This has led to cash flow constraints and credit accumulation. The Council is expected to explore corrective measures to address these anomalies.
Taxpayers and businesses are awaiting a clear mandate on the constitution and operationalisation of the GST Appellate Tribunal. In the absence of a functioning tribunal, appeals are currently being routed through High Courts, resulting in delays and increased litigation burden.
The meeting frequency of three months is still needed until critical issues such as the establishment of the GST Appellate Tribunal (GSTAT), rate rationalisation, resolution of inverted duty structures, classification challenges, and concerns related to input tax credit (ITC) and refunds are adequately addressed, businesses expect the GST Council to convene regularly and provide a clear, consistent regulatory roadmap to ensure trade certainty.
While it is understood that the Centre’s focus on the Union Budget and the States’ engagement with their respective budgets and other legislative responsibilities can contribute to delays, but as a matter of fact, these events are annual and well-anticipated. As such, trade and industry expect better planning and coordination to ensure that the schedule of GST Council meetings remains consistent and is minimally impacted.
It would also be appreciated if the government provides clarity and transparency around any delays, specifying the reasons and clearly communicating the revised timeline. At present, the recurring extensions without definitive dates create uncertainty.
Given that GST-related policy changes are generally not announced through the Union Budget but are instead determined by the recommendations of the GST Council, businesses closely monitor these meetings. Prolonged delays erode clarity on tax positions, prolong disputes with tax authorities, and hinder efficient business planning.
The industry remains hopeful that the government recognises these concerns and ensures that the GST Council meets regularly to deliver timely regulatory updates, thereby enhancing tax certainty and improving cash flow efficiency for taxpayers.
(Views are personal; the author is Senior Director {Partner}, Indirect Taxes at Nexdigm)
The last meeting of the Goods and Services Tax Council, which was the 55th meeting was held on December 21, 2024, in Jaisalmer, Rajasthan. However, the subsequent 56th GST Council meeting is yet to be scheduled.
As per the current mandate, the Council is expected to convene once every three months. Since 2022, however, it has met only nine times (from the 47th to the 55th meeting), falling short of the expected 14 to 15 meetings during this period. This inconsistency has raised concerns among stakeholders in trade and industry.
Prolonged intervals between meetings and the absence of regular engagement have contributed to increased uncertainty, particularly around key issues such as rate rationalisation, classification anomalies, compliance challenges, and delays in refunds.
The primary reason for the delay in convening the 56th meeting appears to be the busy legislative and budget schedules of various state governments, which have so far hindered the Centre’s efforts to finalise a date.
The Council in its next meeting is expected to deliberate on restructuring the current GST rate slabs, particularly by reassigning items currently taxed at 12% to either the 5% or 18% categories. Sectors such as pharmaceuticals are likely to be significantly impacted by this shift.
A crucial point of discussion will also be the future of the compensation cess. The Council may consider extending, modifying, or phasing it out entirely. This decision will have substantial implications for state revenues and the overall tax structure.
Several industries—including pharmaceuticals, textiles, footwear, and fertilizers—continue to face challenges due to inverted duty structures, where the GST on inputs exceeds that on finished goods. This has led to cash flow constraints and credit accumulation. The Council is expected to explore corrective measures to address these anomalies.
Taxpayers and businesses are awaiting a clear mandate on the constitution and operationalisation of the GST Appellate Tribunal. In the absence of a functioning tribunal, appeals are currently being routed through High Courts, resulting in delays and increased litigation burden.
The meeting frequency of three months is still needed until critical issues such as the establishment of the GST Appellate Tribunal (GSTAT), rate rationalisation, resolution of inverted duty structures, classification challenges, and concerns related to input tax credit (ITC) and refunds are adequately addressed, businesses expect the GST Council to convene regularly and provide a clear, consistent regulatory roadmap to ensure trade certainty.
While it is understood that the Centre’s focus on the Union Budget and the States’ engagement with their respective budgets and other legislative responsibilities can contribute to delays, but as a matter of fact, these events are annual and well-anticipated. As such, trade and industry expect better planning and coordination to ensure that the schedule of GST Council meetings remains consistent and is minimally impacted.
It would also be appreciated if the government provides clarity and transparency around any delays, specifying the reasons and clearly communicating the revised timeline. At present, the recurring extensions without definitive dates create uncertainty.
Given that GST-related policy changes are generally not announced through the Union Budget but are instead determined by the recommendations of the GST Council, businesses closely monitor these meetings. Prolonged delays erode clarity on tax positions, prolong disputes with tax authorities, and hinder efficient business planning.
The industry remains hopeful that the government recognises these concerns and ensures that the GST Council meets regularly to deliver timely regulatory updates, thereby enhancing tax certainty and improving cash flow efficiency for taxpayers.
(Views are personal; the author is Senior Director {Partner}, Indirect Taxes at Nexdigm)