The GST Council is scheduled to assemble on September 9, 2024, to address important matters, including the potential streamlining of tax rates.

The discussion at the upcoming meeting may also cover the GST compensation cess. Additionally, the Centre is likely to discontinue providing back-to-back GST loans to states before March 2026.

According to government sources, the meeting will likely focus on the GST compensation cess and the possibility of the Centre discontinuing back-to-back GST loans to states before March 2026.

The existing tax treatment under the Unified Payments System (UPS) is expected to remain unchanged during the meeting.

During its previous meeting in June, the GST Council had assigned the Group of Ministers (GoM) to provide a general outline or a preliminary report on the rationalisation of GST rates.

This would encompass the current status of the work, the areas already covered by the panel, and the work that remains to be completed. The GST Council will deliberate on the future course of action regarding rate rationalisation at its 54th meeting on September 9.

The GoM has recommended rationalising and rectifying the inverted duty structure. The aim is to simplify the rate structure, review the list of goods and services exempt from GST, and increase revenues from the goods and services tax (GST).

The GoM was established in September 2021 under the leadership of Karnataka CM Basavaraj Bommai. Under his guidance, the panel submitted an interim report to the GST Council in June 2022, suggesting alterations to tax rates for certain goods and services and adjustments to the inverted duty structure.

Currently, the GST system includes tax slabs of 5%, 12%, 18%, and 28%. An additional cess is imposed on luxury and demerit goods on top of the highest 28% rate.

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