Tax experts said the transition-related issues of GST 2.0 need to be discussed threadbare by the Council, especially cases involving the levy of compensation cess that is not levied in the revamped regime anymore on goods such as automobiles. (AI generated image)After a long gap of over a year, the Goods and Services Tax (GST) Council has decided to hold its next meeting on September 12 in Delhi, an office memorandum issued by Revenue Secretary Arvind Shrivastava, who also holds the position of the Council’s ex-officio secretary, stated.The Council, which will meet for the first time after the GST 2.0 rate rationalisation in September last year, is likely to take up issues of blocked input tax credit for several goods and services that are facing a higher tax rate for inputs as against the final output, especially after being moved to a lower tax slab under the indirect tax regime.In September last year, the GST Council undertook a significant rate rationalisation process under GST 2.0, bringing two broad slabs of 5% and 18% along with a special 40% rate for luxury goods.While the agenda for the upcoming 57th meeting is yet to be finalised, the Council is also expected to discuss a uniform and simplified registration framework by states and Centre for businesses looking to register under the GST regime. Automatic processes and cancellations in GST registration as well as simpler compliance rules for documentation are also expected to be discussed by the Council.Also Read | GST appellate tribunal head raises concern as appeals lag expected number by wide marginIncidentally, the meeting of the Council, which is headed by the Union Finance Minister and has representatives of 28 states and three union territories, is being held in Delhi on the same day as the first day of the 18th BRICS Summit in the national capital.Tax experts said the transition-related issues of GST 2.0 need to be discussed threadbare by the Council, especially cases involving the levy of compensation cess that is not levied in the revamped regime anymore on goods such as automobiles.“The focus should now shift from incremental changes to improving the quality of the GST framework itself. Priorities include providing a mechanism to regularise legacy tax positions, particularly in online gaming, addressing genuine input tax credit hardships arising from supplier defaults, streamlining GST administration for large PAN-India businesses, resolving transitional issues around compensation cess, and laying down a phased roadmap for bringing petroleum products within the GST framework.Story continues below this adAlso Read | June GST collections at Rs 1.95 lakh crore, import revenue jumps 35%Equally important is reducing interpretational ambiguities that continue to drive avoidable litigation and compliance costs,” Manoj Mishra, Partner and Tax Controversy Management Leader, Grant Thornton Bharat, said.Blocked input tax credit has also become a significant issue for several sectors especially if the inputs are in the form of services (which is taxed at 18%) and the output is in a lower tax slab of 5%.While the GST overhaul reduced the rates on several cars and also did away with the compensation cess, dealers who had requisitioned the cars from manufacturers at the older rates had paid GST and cess on it, for which auto dealers’ association, Federation of Automobile Dealers Associations (FADA), had even approached the Supreme Court to get their dues worth Rs 2,500 crore.In September last year, the GST Council undertook a significant rate rationalisation process under GST 2.0, bringing two broad slabs of 5% and 18% along with a special 40% rate for luxury goods.Story continues below this adUnder the next-generation reforms for GST, small cars with engine capacity not exceeding 1,200 cc (petrol) and 1,500 cc (diesel) and with length not over 4 metre were decided to be taxed at 18% against 28% plus cess levy earlier. Bigger cars were moved to the 40% slab as against 28%. It continued with the compensation cess levy only for tobacco and related products that was later replaced by higher excise duty rates and a Health Security se National Security Cess.Aanchal Magazine is a Deputy Associate Editor with The Indian Express, serving as a leading voice on the macroeconomy and fiscal policy. With 15 years of newsroom experience, she is recognized for her ability to decode complex economic data and government policy for a wider audience. Expertise & Focus Areas: Magazine’s reporting is rooted in "fiscal arithmetic" and economic science. Her work provides critical insights into the financial health of the nation, focusing on: Macroeconomic Policy: Detailed tracking of GDP growth, inflation trends, and central bank policy actions. Fiscal Metrics: Analysis of taxation, revenue collection, and government spending. Labour & Society: Reporting on labour trends and the intersection of economic policy with employment. Her expertise lies in interpreting high-frequency economic indicators to explain the broader trajectory of the Indian economy. Personal Interests: Beyond the world of finance and statistics, Aanchal maintains a deep personal interest in the history of her homeland, Kashmir. In her spare time, she reads extensively about the region's culture and traditions and works to map the complex journeys of displacement associated with it. Find all stories by Aanchal Magazine here ... Read More Tags:Goods and Service Tax (GST)