The GST Council is scheduled to meet for its 54th session on September 9 in New Delhi. The agenda includes a review of progress from two Group of Ministers (GoM) panels that have been working on key issues related to the Goods and Services Tax.
Sources indicate that the council will receive a status report on rate rationalization from the GoM. This panel is expected to highlight the need for new discussions on tax rates, slab mergers, simpler structures, and correcting the inverted duty structure. The GoM, now reconstituted to include Bihar, Karnataka, Uttar Pradesh, Rajasthan, West Bengal, and Kerala, will likely request additional time to finalize their report.
Previously, the GoM included Goa, but the panel now has a slightly different composition. The council will also be informed about a fresh review of an interim report submitted in June 2021, which recommended adjustments to the inverted duty structure and a review of certain exemptions.
The second GoM, focused on boosting the real estate sector under GST, is expected to provide an update on its examination of various proposals. This includes considerations for exempting GST on industrial land leases over 30 years, defining affordable housing criteria in metropolitan areas, and potentially exempting cooperative societies from GST. The panel, chaired by Goa Chief Minister Pramod Sawant, has been unable to reach a consensus and may seek more time before delivering a final report.
The upcoming meeting will be crucial for setting the direction on these issues and may result in extended timelines for finalizing the recommendations from both GoMs.
