GST Council meeting postponed to 7 October from 12 September

The central government will monitor revenue collection trends of the states in view of the concerns expressed during the GST reform deliberations last month by ministers from opposition-rules states.(AFP)AI Quick ReadNew Delhi: The first meeting of the Goods and Services Tax (GST) Council since the rationalization of GST slabs from four to three in September 2025 will now be held on 7 October, instead of 12 September, according to a senior government official.

The 57th meeting of the GST Council is expected to provide an opportunity to review the implementation of the rate rationalization and consider outstanding issues under the indirect tax regime. There is no change to the venue; the meeting will continue to be held in New Delhi, while the agenda is still being finalized.

However, the official did not disclose the reasons for the postponement. The preparatory meetings of government officers will now be held on 5 October from 3pm and on 6 October from 11am onwards, ahead of the Council meeting on 7 October, according to an office memorandum sent to council members.

To be sure, India is set to host the 18th BRICS Leaders’ Summit in New Delhi on 12-13 September. Mint's queries emailed to the finance ministry on Sunday remained unanswered. The 57th meeting will be the first since the Centre and states approved a major rationalization of the indirect tax regime at the 3 September 2025 meeting.

The overhaul simplified the rate structure, with most goods and services moving into the 5% or 18% slabs, while a 40% rate was retained for select demerit and luxury items. There were four main rate slabs of 5%, 12%, 18% and 28% before.

The revised rates came into effect from 22 September 2025. The council, earlier scheduled to meet on 12 September in New Delhi, is expected to take stock of the impact of the rate changes, including whether the benefits of lower GST rates have translated into lower prices for consumers, and review the 18% GST rate on mobile phones as reported by Mint on 28 August.

A March 2026 study by National Institute of Public Finance and Policy professor Sacchidananda Mukherjee and research fellow Shivani Badola found mixed evidence on the transmission of GST cuts to retail prices. It found price declines in categories such as air-conditioners and motor cars, while prices of several personal-care products and medicines continued to rise during the period studied.

Key areas, according to experts, awaiting deliberation include legal and technological amendments to protect bona fide recipients of input tax credit (ITC) when suppliers default on tax payments, an issue considered by the Gujarat high court in Maruti Enterprises and subsequently upheld by the Supreme Court in Bhandari Scrap Traders.

The Council is also expected to address changes related to GST administration, including legal and technological amendments, input tax credit safeguards, refunds, and registration processes. “The convening of the 57th GST Council after a year reflects the government’s commitment to consensus‑building between the Centre and states on over 100 agenda items,” said Vivek Jalan, a partner at Tax Connect Advisory Services.

“From rectifying increase in industry costs due to non receipt of inverted duty refunds on input services, to safeguarding bona fide taxpayers’ ITC, as underscored in Maruti Enterprises and affirmed in Bhandari Scrap Traders, and rationalizing blocked credits post Safari Retreats, inter-state transfer of OTC balance for multi state registered taxpayers; the Council is poised to deliver a GST budget of sorts,” Jalan said.

GST collections, meanwhile, continue to rise. Gross GST collections rose 14.8% to ₹1.99 trillion in August from ₹1.74 trillion a year ago, with collections from imports contributing significantly to the increase. However, August collections were lower than the ₹2.11 trillion recorded in July, when monthly GST collections crossed the ₹2 trillion mark for the second time.

July’s mop-up was also the second-highest monthly GST collection since the tax regime was introduced in July 2017, after the record ₹2.43 trillion collected in April 2026. Dhirendra Kumar is a seasoned policy reporter with about 20 years of experience in deep, on-ground reporting across key economic and governance sectors.

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