The GST Council has gone over five months without a meeting, in breach of Rule 6 of its Procedure and Conduct of Business Regulations, which prescribes quarterly meetings.
The last meeting was on December 21, 2024, in Jaisalmer, meaning the next should have occurred by March 31, 2025. This marks the fourth time the gap between meetings has exceeded five months, with the longest being over eight months between October 2023 and June 2024, due to the Lok Sabha elections.
This delay is concerning for various reform measures, including tax rate revisions, compliance simplification for taxpayers, and overall improvement of the tax ecosystem.
While there’s no clear explanation for the current delay, Kerala Finance Minister KN Balagopal mentioned expecting a meeting in April. “Difficult to say why it could not take place. Then India-Pakistan tension happened, which could be well understood,“ Balagopal told businessline. “Any further delay will impact the future course of reform action,“ he said.
Tax experts pointed out that while recommending committees (Fitment and Law Committees) meet regularly, their decisions cannot be approved and implemented without Council meetings. He suggested video conferencing for short meetings to avoid hardship for taxpayers.
Another tax expert, stressed the need for regular meetings to address crucial economic priorities like implementing Section 11A, clarifying ambiguities, considering GST rate reductions in insurance, and broadening the tax base.