GST Council 56th Meeting: What to Expect Next on GSTAT, Rates & Rules
Key discussions are expected on GST Appellate Tribunal (GSTAT) finalisation, possible rate changes, and streamlined GST registration norms—building on the momentum from the 55th meeting.
Summary
Key updates may include procedural clarity, relaxation for MSMEs, and formal notification of tribunal benches. A crucial meet for India’s indirect tax ecosystem.
GST Appellate Tribunal (GSTAT): Implementation Push
What We Know:
- The GST Council approved the GSTAT framework in the 50th Meeting (July 2023).
- Finance Ministry notified GSTAT (Appointment and Conditions of Service) Rules, 2023 and GSTAT Procedure Rules, 2025.
- As of June 2025, state governments have sent proposals for locations of State Benches.
What’s Expected in 56th Meeting:
- Finalisation of bench locations and start date.
- Standardised procedural SOPs for filing appeals.
- Coordination between Centre and States to ensure pan-India rollout.
📌 Legal Reference: Section 109–111 of CGST Act, 2017 & Article 323B of the Constitution.
✅ Expert View:
CA Mahesh Gupta says, “Once operational, GSTAT will reduce High Court load and fast-track indirect tax disputes for businesses.”
Rate Revisions: Sector-Specific Relief?
The 56th Council may review anomalies or demands raised by industries, especially MSMEs.
Possible Items Under Review:
| Item/Service | Current Rate | Expected Discussion |
|---|---|---|
| Fertilizer inputs | 18% | Rate cut proposal |
| Solar panels’ batteries | 18% | Uniform rate request |
| Mobility devices for disabled | 5%/18% | Clarification needed |
| Online gaming & casinos | 28% (gross) | Judicial outcome pending |
🟢 Background: Post the Supreme Court stay in the Gameskraft case, industry expects clarity on retrospective taxation and valuation under Rule 31A.
GST Registration Norms: MSME Relief in Sight?
The GST Council is likely to address the long-pending issue of rigid registration procedures, especially for:
- Home-based small sellers
- Gig economy service providers
- MSME traders without commercial premises
Key Suggestions Under Discussion:
- Deemed approval timeline reductions
- Streamlining physical verification
- Better clarity on PAN-linked Aadhaar verification
📌 Legal Reference: Rule 8 and 9 of CGST Rules, 2017 – often cited for delays in registration.
Previous Meeting Reference: What Was Discussed?
In the 55th GST Council Meeting (July 2023):
- GSTAT Rules were notified
- Clarifications on services in hotels charging >₹7,500
- Amnesty Scheme extension under Section 128A for returns from FY 2017–20
These set the tone for current expectations.
Overall Outlook from Stakeholders
- Businesses want simplified compliance, fewer notices, and faster dispute resolution.
- State governments may push for compensation or increased settlement under IGST.
- Tax professionals are watching for litigation-friendly mechanisms and updated FAQs.
FAQ: 56th GST Council Meeting Expectations
Q1: Will GSTAT become operational after the 56th meeting?
A: That’s likely.
Q2: Is another GST Amnesty Scheme expected?
A: Unlikely at this stage.
Q3: Will registration rules for small traders be relaxed?
A: The Council may reduce verification time or offer auto-approval windows.
Conclusion
The 56th GST Council Meeting could be a turning point for India’s GST regime.
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