GST Council considers major reforms to streamline registration and input tax credit procedures

India’s GST Council is set to meet in September to discuss significant changes to registration processes and input tax credit rules, aiming to reduce compliance burdens for businesses amid ongoing reforms.

The GST Council is scheduled to meet in New Delhi on 12 September, with officials set to gather a day earlier, as the government considers a fresh round of compliance changes for businesses under India’s goods and services tax system. According to an office memorandum cited by multiple Indian media outlets, the 57th meeting will be chaired by Union Finance Minister Nirmala Sitharaman and is expected to focus on simplifying registration rules, particularly for large firms handling substantial monthly input tax credit claims.

The planned session comes after a lengthy gap since the council’s last meeting, held on 3 and 4 September 2025. That earlier gathering approved a major overhaul of GST rates and slabs, which took effect on 22 September 2025 and replaced the original four-tier structure introduced when GST began in July 2017. The new framework left India with two standard rates of 5% and 18%, alongside a 40% levy on select sin and ultra-luxury goods.

Among the issues likely to be discussed next month is easing registration procedures for companies that pass on tax credit of more than Rs 2.5 lakh a month, according to reports by Livemint, The Times of India and Moneycontrol. Those outlets also said automation in the cancellation process for GST registrations is expected to be considered, as policymakers continue trying to reduce friction in tax administration.

Business Standard reported that the council may also look at restrictions on blocked input tax credit under section 17(5) of the Central Goods and Services Tax Act, which currently denies credit on certain goods and services. The Economic Times said other proposals could include changes to corporate guarantee treatment and easier multi-state registration for smaller businesses, reflecting a broader push to address working-capital pressures and compliance costs.

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