GST Council to meet after a year on Sept 12; blocked credit, simpler compliance likely on agenda

After a year, the Goods and Services Tax (GST) Council is set to convene on September 12 in Delhi, according to an office memorandum from Revenue Secretary Arvind Shrivastava. The council, which convened following the GST 2.0 rate rationalisation in September, is expected to tackle blocked input tax credit for certain goods and services that face a higher input tax rate compared to their output tax rate.

Additionally, the council is anticipated to discuss the development of a consistent and simple registration process for businesses registering under the GST regime. Automation and the cancellation of GST registration processes, alongside less complex documentation requirements, are also expected to be on the agenda. Tax experts emphasise the need to thoroughly address transition issues arising from the GST 2.0 overhaul, particularly concerning the removal of compensation cess on automobile transactions.

Key areas of focus include regularising legacy tax positions, particularly in online gaming, addressing input tax credit hardships caused by supplier defaults, simplifying GST administration for large businesses operating across India, resolving transition complications surrounding compensation cess, and establishing a phased plan for incorporating petroleum products into the GST framework.