The interminable wait for the 56th GST Council meeting continues, with no indication yet of its date or venue. The last meeting was held on December 21, 2024, in Jaisalmer, Rajasthan. Experts express concern that this delay will exacerbate existing disputes and create a policy vacuum.
According to the Rules for Procedure and Conduct of Business Regulations of the GST Council, it is mandated to meet at least once every quarter of the financial year. The rules also stipulate that a notice for the meeting must be dispatched at least seven days prior to the scheduled date, though an emergency meeting can be convened with two days’ notice. Typically, however, a 21-day notice period is observed.
Technically, at least one meeting should have occurred since December. However, it is believed that the presentation of budgets by the Centre and States, including Union Territories with Legislatures, followed by the unprecedented situation post-Pahalgam incident and Operation Sindoor, led to the delay.
There is an assumption that the meeting may be further postponed due to the Monsoon Session of Parliament, which commences on July 21 and runs until August 21, although no rule prohibits holding the meeting during a parliamentary session.
Earlier this month, Finance Minister Nirmala Sitharaman indicated in an interview with businesslinethat the meeting could be convened at any time.
She elaborated on the preparatory work underway, stating, “We want to look at every rate and wherever reduction is possible, we shall bring those rates down. Equally, we are looking at reducing the number of slabs. What will be the final shape, I can’t say but intense work is going on.”
Compensation cess
She also said that the issue of the compensation cess, which expires on March 31, 2026, would be addressed.
Meanwhile, experts are increasingly concerned about the delay. Neha Shrivastava, Associate Partner at Forvis Mazars in India, said the more than six-month delay in convening the GST Council meeting is generating a significant policy vacuum.
Industries across various sectors, including insurance, logistics, drones, and online gaming, are in a state of uncertainty, awaiting crucial rate decisions and exemptions. The continued deferment of rate rationalisation is also fuelling classification disputes.
Shrivastava noted, “Key issues awaiting decisions, such as ITC eligibility on CSR spending, taxability of gaming and cryptocurrency, and e-commerce treatment, await the Council’s action. Moreover, the lack of a GST Appellate Tribunal and the uncertainty surrounding service exports are dampening compliance and delaying the settlement of disputes.”
Key reforms
Krishan Arora, Partner at Grant Thornton Bharat, said the Council is expected to address key reforms, including GST rate rationalisation, the future of the compensation cess, the rollout of the appellate tribunal, and other legal and sector-specific clarifications.
Arora emphasised, “The GST Council’s ongoing commitment to consensus-building and inclusive decision-making continues to strengthen India’s unified tax framework, ensuring that reforms are both robust and responsive to the evolving needs of the economy. A renewed push for regular meetings will reinforce the spirit of cooperative federalism and provide clarity as well as momentum to India’s tax framework.”
