GST Council meeting on October 7: Process reforms, ITC and invoice rules likely to take centre stageInstagram
The 57th GST Council meeting, scheduled for October 7, is expected to focus on simplifying GST procedures rather than announcing another major round of tax-rate changes.
The meeting comes a year after the Centre and states approved a major GST rate rationalisation exercise. Finance Minister Nirmala Sitharaman has said the upcoming meeting will focus on process reforms under GST 2.0, including areas such as e-invoicing and input tax credit (ITC) rules.
What will the GST Council discuss?
One of the key areas expected to come up is GST compliance. The Council may examine how invoice filing and invoice matching can be made simpler and more efficient.
It could also look at problems arising from mismatches between buyer and seller returns, as well as disputes over the eligibility of input tax credit. The broader objective is to reduce compliance costs and GST-related litigation for businesses.
Input tax credit rules
Input tax credit, or ITC, allows eligible businesses to claim credit for GST paid on inputs against their output tax liability.
However, businesses can face difficulties when their suppliers fail to correctly report transactions or pay the tax collected. The Council may consider ways to protect genuine buyers who have fulfilled their own compliance requirements while continuing to prevent fraudulent claims.
This could be particularly relevant for businesses that have faced denial or blockage of ITC because of issues on the supplier’s side.
GST registration may also be simplified
Another issue under consideration is GST registration.
The government is looking at simplifying registration procedures, particularly for businesses that pass on significant amounts of tax credit. The aim is to make the process more uniform and reduce uncertainty for taxpayers dealing with different central and state GST authorities.
Automation of certain registration and cancellation procedures could also be discussed.
What about GST rates?
For consumers and businesses waiting for another major GST rate cut or restructuring, the October 7 meeting is currently expected to be different from last year’s rate-focused exercise.
Government sources indicate that rate-related matters are not currently part of the main agenda, with the emphasis instead on process reforms.The previous major GST overhaul reduced the structure to two principal slabs of 5% and 18%with a 40% rate for specified luxury and sin goods, effective from September 22, 2025.
UPI and MDR issue may also come up
Another issue that could attract attention is the 18% GST on Merchant Discount Rate (MDR).
MDR is the fee associated with processing certain digital payments. Business Today reported that the GST Council could review the tax treatment of MDR, although the issue is not currently part of the official agenda.
Therefore, any changes regarding GST on UPI-related MDR should be treated as a possibility rather than a confirmed decision ahead of the meeting.
GST Council meeting on October 7: Process reforms, ITC and invoice rules likely to take centre stageInstagram
What does this mean for businesses?
In simple terms, the October meeting is expected to focus less on “how much GST do I pay?” and more on “how do I comply with GST more easily?”
If the proposed process changes are approved, businesses could see changes relating to:
- GST registration and cancellation
- Invoice filing and matching
- Input tax credit claims
- Refund procedures
- Buyer-seller data mismatches
- Compliance requirements
- GST-related disputes and litigation
However, these are matters expected to be discussed or considered; they are not changes that businesses should treat as effective until the GST Council takes decisions and the necessary notifications or legal changes are issued.
Why this meeting matters
The October 7 meeting is therefore expected to be an important step in the government’s broader effort to simplify the GST system after the major rate rationalisation undertaken in 2025. The focus is shifting toward the functioning of the system itself — registration, invoices, ITC, refunds and compliance — rather than another broad-based rate overhaul