GST Council Schedules 57th Meeting for September 12 with Focus on Compliance and Ease of Doing Business

The Goods and Services Tax (GST) Council is scheduled to hold its 57th meeting on September 12 in Delhi. An office memorandum issued by the GST Council and signed by Revenue Secretary and Ex Officio Secretary Arvind Srivastava formally announced the meeting, which follows the previous session held on September 3.

The Council is chaired by the Union Finance Minister and includes the Minister of State in the Finance Ministry, alongside representative ministers from all 28 states and three union territories with legislatures. Although the formal agenda has not yet been finalized and circulated, officials indicate that the discussions will largely center on compliance and improving the ease of doing business.

A key proposal expected on the agenda involves finalizing uniform guidelines for documentation required to accelerate the processing of GST registration applications for businesses that pass on tax credits exceeding ₹2.5 lakh a month. These guidelines are also projected to outline norms for registration cancellation.

This initiative follows a simplified registration process introduced last year for small and low-risk businesses. Data analysis currently shows that roughly 65 percent of GST registrations occur through this simplified route. The upcoming discussions aim to establish a similar mechanism for the remaining 35 percent of applicants, primarily comprising larger businesses.

Another significant issue set for attention involves accumulated compensation cess, a matter currently pending before the Supreme Court. A petition filed by the Federation of Automobile Dealers Associations (FADA) challenges government notifications regarding the transition or refund of accumulated GST compensation cess credit. Industry associations have estimated this value to be around ₹2,500 crore. Auto retailers have requested the government to account for significant Compensation Cess balances in their electronic credit ledgers ahead of the new GST regime implementation scheduled for September 22, 2025.

Discussions may also address rate adjustments. Industry stakeholders have advocated for lowering the GST rate from 18 percent to 5 percent on mobile handsets priced up to ₹25,000, citing a drop in demand. Proponents argue that a rate reduction could stimulate volume growth and potentially increase overall tax collection.

Additionally, the Council is expected to review proposals regarding input tax credit (ITC) restrictions. Easing limitations on specified goods and services—such as motor vehicles, food and beverages, outdoor catering, health services, club memberships, and certain travel-related benefits, as well as goods used for the construction of immovable property—is under consideration.

"The upcoming 57th GST Council meeting represents a crucial step toward refining compliance frameworks for larger enterprises, building upon the simplified processes earlier extended to small businesses. Addressing long-standing operational bottlenecks, such as input tax credit rules and registration norms, will be vital for improving business sentiment. Furthermore, finding a clear resolution regarding accumulated compensation cess will provide much-needed clarity to the automotive retail sector and the broader business ecosystem as regulatory frameworks continue to evolve." — Dr. Shishir Gupta, Founder & CEO, StartupLanes