GST Council meeting: Key points to be discussed in Monsoon session in Parliament

Stepping into the world of GST can feel like navigating a complex maze, but the latest GST news from India reveals a clear path towards simplification and better compliance for everyone – from big businesses to the smallest shopkeeper.

The buzz is all about the upcoming GST Council meeting, likely to reshape how we experience this indirect tax.¹ Expect significant GST rate rationalization, with a strong push to eliminate the 12% slab.² This means many everyday items could see their tax rates either drop to 5% or increase to 18%, aiming for a more streamlined system. While this promises clearer pricing for consumers, industries like garments are already voicing concerns about potential price hikes on essential clothing.³

Beyond rates, the government is committed to making GST compliance more robust and transparent.⁴ From July 2025, get ready for “hard-locking” of your GSTR-3B returns. What does this mean for you? It ensures that the outward supply data you declare in GSTR-1 will directly auto-populate into your GSTR-3B, making manual edits a thing of the past. This change, along with a strict three-year deadline for filing all GST returns, emphasizes the importance of timely and accurate declarations.

For businesses operating across multiple states, the new Input Service Distributor (ISD) registration rules, effective from April 2025, are crucial.⁵ This aims to streamline the distribution of input tax credit (ITC), making it easier to manage across various branches.⁶

We’re also seeing a stronger push for digital security with mandatory Multi-Factor Authentication (MFA) for all GST portal access, enhancing the safety of your tax data. And to prevent fraud and ensure efficient logistics, new restrictions are in place for e-Way Bill generation and extensions.⁷

One of the most anticipated developments is the operationalization of the GST Appellate Tribunal (GSTAT).⁸ This is a game-changer for dispute resolution, offering a dedicated forum for appeals and reducing the burden on higher courts.⁹ It signals a move towards faster and more specialized handling of tax disputes.

While efforts are underway to make GST smoother, recent GST notices to small businesses based on UPI transactions have highlighted the need for careful scrutiny and a human approach to enforcement.¹⁰ The “Know GST” campaign in Karnataka is a welcome step, aiming to educate traders and ensure that legitimate businesses aren’t unduly penalized.¹¹

In essence, the ongoing GST reforms are geared towards a more efficient, transparent, and ultimately, a simpler tax regime for all.¹² Staying informed about these GST updates and adapting to the procedural changes will be key for every taxpayer.

Avinash Bhatt

Email: Bhattavi93@gmail.com