Archive · 19 Jun 2025
GST Council to Meet in July, Focusing on Cess Future
The GST Council, which manages taxes in India, plans to meet in early July.
They will discuss how to handle the compensation cess, a special tax that ends in 2026.
A big worry is how to replace the money from the cess, which comes from things like cars and tobacco.
They are considering making it a regular tax.
Some states are concerned that changing the tax structure might affect their income.
The council may also create a group to simplify the tax system.
The GST Council is expected to meet in early July before the Monsoon Session.
Key focus includes the future of the compensation cess after 2026.
The compensation cess may be turned into a tax levy.
Some states are concerned about revenue loss from the cess.
A taskforce for tax simplification could be established.
- Who
- The Goods and Services Tax Council.
- What
- The GST Council will meet to discuss the future of the compensation cess and GST rate rationalization.
- When
- Early July, ahead of the Monsoon Session of Parliament.
- Where
- Not explicitly mentioned.
- Why
- To address the expiring compensation cess and related tax issues.
States' Concerns
Centre's Objectives
Revenue Implications
States' Concerns
Concern about revenue loss from compensation cess.
Centre's Objectives
The center seeks a sustainable revenue model post-cess.
- Meeting Timing
- Early July
- Next Parliament Session
- Monsoon Session
- Key Agenda Item
- Compensation cess
- Cess Expiration
- 2026
- Possible Outcome
- Turning cess into a tax levy
