3 days ago
GST Council to Tackle Compliance, Credits and Mobile Rates
The GST Council is a group that helps decide India’s goods and services tax rules.
It will meet on September 12 after not meeting for 374 days.
This time, it may focus more on making tax compliance easier for businesses.
The Council may also discuss lowering the 18 per cent GST charged on mobile phones.
Some companies have tax credits stuck because the tax on their materials is higher than the tax on their finished products.
Experts want businesses to receive refunds for certain service-related credits too.
They also want honest buyers protected when suppliers fail to pay their taxes.
The Council could consider faster refunds, easier credit transfers and ways to settle disputes before they reach court.
The GST Council is scheduled to meet on September 12 after a 374-day hiatus.
Compliance reforms and easing business burdens are expected to take priority over broad rate rationalisation.
The Council may consider cutting GST on mobile phones from the current 18 per cent.
Experts want refunds to cover input-service credits trapped under the inverted duty structure.
Other proposals include protecting genuine ITC claims, automating refunds and resolving disputes before litigation.
- Who
- The GST Council, with proposals discussed by tax experts and advisers.
- What
- A meeting is expected to address GST compliance, inverted duty credits, mobile-phone rates and related legal and administrative issues.
- Where
- When
- September 12, 2026; the article was published August 30, 2026.
- Why
- To ease compliance, unlock working capital, protect compliant taxpayers and reduce recurring GST litigation.
Key facts
- Meeting date
- September 12, 2026
- Previous meeting gap
- 374 days
- Current mobile-phone GST
- 18 per cent
- Inverted-duty issue
- Input GST can exceed the tax payable on finished products, creating accumulated credits.
- Input-service refunds
- Current refund rules restrict inverted-duty refunds to input goods, according to the article.
- Accumulated Compensation Cess
- Estimated conservatively at around ₹6,000 crore.
- Potential refund reform
- Refund processing could move toward a risk-based automated system using GSTN and e-invoicing data.
Quotes
Sivakumar Ramjee
Executive Director-Indirect Tax at Nangia Global
“GST 2.0 simplified slabs, but it also deepened the inverted tax problem”
thehindubusinessline.com
“Should genuine GST paid on services remain locked as working capital?”
thehindubusinessline.com
Sources
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