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GST Council to Reconvene in Early July to Discuss Compensation Cess Merger

Officials are gathering stakeholder feedback to inform proposals on merging the compensation cess with base GST rates.

GST Council Meet | Image: X
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Overview

  • The Goods and Services Tax Council has scheduled its first meeting since December for early July ahead of Parliament’s Monsoon Session.
  • Ministers are set to debate phasing out the compensation cess by March 2026 and integrating it into existing GST slabs.
  • States’ revenue concerns over high-ticket items like automobiles and tobacco have prompted calls to raise the 40 percent GST rate cap.
  • A proposed taskforce of state and central officials could steer broader rate rationalisation and simplification of the GST framework.
  • Finance Minister Nirmala Sitharaman will meet Central Board of Indirect Taxes and Customs officials on June 20 to collect further administrative and industry insights.