The next GST Council meeting is set to advance the “process reforms” agenda initiated in the previous session, aiming to ease compliance costs, simplify registration, reduce litigation, and address inverted duty structure (IDS) issues, according to government sources.
The meeting is likely to be held in late July or August, according to a report by Moneycontrol.
“The key issue of simplifying the slab structure has been resolved. Now, we need to focus on process reforms,” the report cited a senior official as saying.
In the September 2025 meeting, the Council approved a simplified GST registration scheme for small and low-risk businesses, benefiting approximately 96% of new registrants.
A separate scheme was also approved for small suppliers operating through electronic commerce platforms. The upcoming session will present the detailed framework of these schemes for approval.
Another focal point will be sectors grappling with inverted duty structures, where tax rates on inputs exceed those on outputs, leading to accumulated input tax credits that cannot be claimed.
Industries such as pharmaceuticals, textiles, footwear, food processing, paper, and electric vehicles are particularly affected, as taxes on raw materials, logistics, technology, and capital investments often surpass GST collected on final products.
To provide relief, the previous Council approved a system-driven 90% provisional refund mechanism for IDS claims, aimed at easing liquidity pressures and eliminating prolonged cash-crunch cycles for domestic manufacturers.
Experts note that while digitization has improved tax administration, businesses still face compliance complexities, procedural hurdles, and frequent system-driven changes.
The upcoming GST Council meeting presents an important opportunity to further streamline processes, strengthen domestic manufacturing, and enhance India’s global competitiveness.
