GST shake-up: Council may rejig tax officers' panels

Nine years after the Goods and Services Tax (GST) was introduced, the GST Council is set to reconsider its tax officers' committee structure to make it leaner as the indirect tax regime matures, according to sources.The committee currently comprises the Secretariat, an implementation committee, eight standing committees focusing on various aspects, and sectoral groups.

However, the structure is proposed to be revamped into three consolidated bodies: the Secretariat, the implementation committee, and a single standing committee of officers.The GST implementation committee (GIC) will remain the key decision-making body, taking up matters delegated by the Council and deciding on matters referred to it.

It would also handle technology-related grievances.GIC would refer important matters to the Secretary, the Union Finance Minister, or the Council as needed. The new standing committee will carry out technical work, examining proposals to amend laws, rules, notifications, and forms, simplifying procedures, and considering representations from trade and industry.

Members of the standing committee will be selected based on each state's relative size in the system and will rotate every two years. No state will have a permanent seat, and the committee's agenda will be shared with all states for feedback.The proposed reforms are based on two principles: political ownership of proposals from the outset and transparency in handling them.

GST integrated various local taxes under a unified system. As GST was launched, multiple committees were required to address technical concerns, including a Fitment Committee for tax rate proposals. The dismantling of the existing structure indicates that the indirect tax system has stabilized, and a leaner arrangement with political ownership and a single technical committee is what a settled tax system needs.