The next Goods and Services Tax (GST) Council meeting is likely to be held after Parliament’s monsoon session, as the group of ministers on rationalising rate slabs and the GoM on cess are yet to submit reports, three government sources told Moneycontrol.
Parliament will meet from July 21 to August 12 for the monsoon session.
GoMs’ recommendations are expected to form a substantive part of the council’s agenda. In their absence, the government sees little merit in convening the meeting.
“The GoM on rate rationalisation is still to reach consensus on the proposed three-rate structure. The issue of whether to retain or do away with the 12 percent slab remains unresolved,” one of the sources told Moneycontrol.
The GoM was set up to correct the inverted duty structure and streamline the rate framework. Since its reconstitution, it has missed several deadlines and key decisions remain pending.
Another source said a meeting was being considered before the monsoon session but logistical and procedural constraints have made it unlikely.
“Before the Parliament session begins on July 21, the council meeting could be held at least once but the council is waiting for the GoM reports,” the second source said.
A third senior government source noted that even if the GoM on rate rationalisation submits at least one actionable proposal – such as inversion correction – the council could consider convening. “But it appears the government is waiting for a more comprehensive decision on the larger issue of the three-rate GST structure. These matters will probably be taken up in the next council meeting after the monsoon session,” the source said.
As the session begins July 21 and there is limited time to issue a notice for the council meeting, the sources said. “Time is short, that’s all I can say. It’s difficult now. Parliament begins this month, so we have less than two weeks. That explains the delay,” the source said.
The GST Council last meet in December and is yet to hold a meeting this year, an unusually long gap when several vital proposals, including rate revision, await decisions.
Finance minister Nirmala Sitharaman is the chairperson of the council, which has ministers in-charge of finance or any other ministry nominated by each state government.
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