New Delhi, August 22: India’s Goods and Services Tax (GST) Council will hold its 56th meeting on Sept. 3-4 in New Delhi to discuss a two-rate GST structure proposed by the central government, the Council said in a memorandum issued late Friday.
The meeting, the first in over eight months, is expected to take up recommendations of several Groups of Ministers (GoMs), including the contentious issue of rate rationalisation. Prime Minister Narendra Modi had flagged the two-rate system in his Independence Day speech as part of what he called a “Deepavali gift” of next-generation GST reforms.
The Finance Ministry later said it had forwarded the proposals to the GoM on Rate Rationalisation. Bihar Deputy Chief Minister Samrat Chaudhary, who chairs the panel, said on Thursday the proposals had been deliberated and sent to the Council for consideration.
However, state governments have voiced concerns about the revenue impact of lowering rates. Kerala Finance Minister K.N. Balagopal, a member of the GoM, told The Hindu that states had urged the Council to build in a mechanism to compensate them for potential losses.
The Council, which by rule is required to meet every quarter, last convened in December 2024. Any decision on the two-rate GST system is expected to involve significant debate among the Centre and states before approval.
