Massive Indirect Tax Reforms On Cards As GST Council Set To Meet On 3-4 September

The Goods and Services Tax (GST) Council will convene its 56th meeting on 3–4 September in New Delhi, the Council said in a memorandum issued late Friday (22 August) , The Hindu reported.

The meeting is expected to take up key recommendations from various Groups of Ministers (GoMs), including the Centre’s proposal to restructure GST into a two-rate system.

Prime Minister Narendra Modi had earlier referred to the upcoming reform as a “Deepavali gift” in his Independence Day address.

The Finance Ministry subsequently confirmed that its proposals had been submitted to the GoM on Rate Rationalisation.

Bihar Deputy Chief Minister Samrat Chaudhary, who heads the GoM, said on Thursday that the Centre’s proposal had been forwarded to the Council.

However, Kerala Finance Minister K.N. Balagopal cautioned that States remain concerned about possible revenue losses.

He said the GoM has recommended a compensation mechanism for States, should the rate changes result in reduced collections.

This will be the Council’s first meeting in more than eight months, the last having been held in December 2024.

Under the rules, the Council is required to meet at least once every quarter.

Also Read : GST 2.0 Reforms: GoM Panel Backs Simplified Indirect Tax Regime With 5 Per Cent and 18 Per Cent Slabs, Says Report