No major GST rate changes are expected at the next GST Council meeting on October 7, with the panel likely to focus instead on ‘process reforms’ and the implementation of the recently undertaken rate rationalisation, according to Finance Ministry sources. The Council is expected to review how the GST rate changes have been implemented over the past year, rather than undertake another broad-based round of rate cuts. The focus is likely to be on ironing out implementation issues and taking stock of the impact of the rate rationalisation.
Finance Minister Nirmala Sitharaman had earlier said the October 7 meeting would focus on process reforms under “GST 2.0”, including areas such as e-invoicing and input tax credit rules. The previous meeting had focused on rate rationalisation, with process reforms deferred to the October meeting.
This means expectations of another significant overhaul of GST rates could remain subdued ahead of the meeting.
The Council may use the October meeting to assess the experience of the rate rationalisation over its first year and consider whether further changes are needed based on implementation.
Separately, the government has not committed to implementing a five-day banking week, with the proposal continuing to remain a key demand of bank unions, according to teh same sources. No agreement has been reached between the government and bank unions on the issue so far. The United Forum of Bank Unions has therefore decided to proceed with its three-day nationwide strike from September 28 to 30.
The Finance Ministry has continued discussions with unions and bank managements, but the five-day workweek remains unresolved. The government has said the remaining issue is still under examination and has urged employees to resolve the matter through dialogue.
To minimise the impact on customers, the government has also approved Sunday, September 27 as a working day for public sector banks and regional rural banks.
