Although agenda of the meeting is yet to be finalised and circulated, but this time focus is likely to be more on compliance and ease of doing business.
| Photo Credit:
Karma Bhutia
More than a year after, GST Council will meet on September 12. This will be 57th meeting of the Council.
An office memorandum by GST Council, signed by Revenue Secretary and Ex Officio Secretary to the Council, Arvind Srivastava gave the notice of the meeting to be held in Delhi. The Council is chaired by Finance Minister while Minister of State in the Finance Ministry and representative Minister of all the 28 States and 3 Union Territories with legislature are members. Last meeting of the Council took place on September 3 when massive rate rationalisation exercise took place.
Although agenda of the meeting is yet to be finalised and circulated, but this time focus is likely to be more on compliance and ease of doing business. For example, once such likely proposal is finalising the guidelines to bring uniformity in documents that are to be submitted for faster processing of GST registration application of businesses who pass on tax credit of over ₹2.5 lakh a month. The guidelines are also expected to prescribe norms for cancellation.
This will be another big reform after simplified registration process was initiated last year based on recommendation by GST Council on September 3 last year and rolled out from November 1. It was mainly for small and low-risk biz. Small and low-risk businesses applicants whom the GST system identifies based on data analysis, or those applicants who self-assess that their output tax liability does not exceed ₹2.5 lakh per month (inclusive of CGST, SGST/UTGST and IGST) can opt for the scheme. Nearly 65 of the GST registrations are happening through this route, now the effort is bring a simplified mechanism for remaining 35 per cent, who are basically big businesses
There is big issue is about accumulated compensation cess. The matter is now pending in the Supreme Court. A petition filed by the Federation of Automobile Dealers Associations (FADA) challenged the Centre’s notifications on transition or refund of accumulated GST compensation cess credit that the industry associations have repeatedly estimated to be around ₹2500 crore in value. Since the announcement of the GST 2.0, the auto retailers requested the government to hold significant, validly availed Compensation Cess balances in their electronic credit ledgers before even the new GST regime kicked off on September 22, 2025.
There is also expectation for lowering GST to 5 per cent from 18 per cent on mobile handsets costing up to 25,000 as majority of buyers are from this segment. Industry argued that since demand has come down, any rate reduction will boost up the demand, benefit the industry and also help in higher collection of GST as volume will grow.
Another proposal is likely to be about easing restrictions on input tax credit (ITC) for specified goods and services on which credit is currently not available. If recommended, it will benefit motor vehicles and certain other conveyances, food and beverages, outdoor catering, beauty treatment, health services, club memberships and certain travel-related benefits. ITC is also restricted on goods and services used for construction of immovable property, subject to the conditions prescribed under the law. This can also be removed.
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