GST Council Set To Meet For First Time This Year, Ahead Of Union Budget; Here's What To Expect On Tax Reforms

As per a statement from the Finance Ministry on Thursday (13 June), the Goods and Services Tax (GST) Council will meet on 22 June, the first of this year.

Last time, the Council met on 7 October 2023 and discussed a "perspective plan" to impose a cess or surcharge on top of GST levies after March 2026, when the GST Compensation Cess is due to expire.

It is expected that in the upcoming meeting, the Council will discuss a replacement levy for the Cess and how those funds could be used, The Hindu reported.

While there is no official word on the agenda, a plan to restructure the complex multiple-rate tax structure can be discussed as the GST revenues have been increasing significantly.

Also, since the meeting is coming up ahead of the Union Budget presentation next month, State Finance Ministers are likely to give some suggestions for the indirect tax regime.

The recommendations like broader rate rationalisation made by a group of ministers (GoM) under former Karnataka Chief Minister Basavaraj Bommai can also be taken up for discussion.

The tax experts are also seeking multiple clarifications from the GST Council including taxability for the online gaming sector before October, taxability of ESOPs, corporate guarantee taxability, etc.

The GST Council is headed by Finance Minister Nirmala Sitharaman. It is generally expected to meet every quarter but has met only six times since 2022.