The Goods and Services Tax (GST) Council, chaired by Union Finance Minister Nirmala Sitharaman, is set to meet on September 9, 2024, in New Delhi. This will mark the 54th meeting of the GST Council, which serves as the apex decision-making body for GST matters.
Key topics on the agenda include discussions on rate rationalisation, reducing tax slabs, and addressing issues related to duty inversion under GST. These deliberations are expected to have significant implications for both businesses and consumers across the country.
During the previous meeting on June 23, Sitharaman indicated that the upcoming session would feature a presentation by the Group of Ministers (GoM) on rate rationalisation. Led by Bihar Deputy Chief Minister Sumant Chaudhary, the GoM will provide an update on their progress and outline the remaining work.
"The Council will start the discussion on rate rationalisation in the next meeting," Sitharaman stated after the June session.
The September meeting also comes in the wake of a recent tax demand notice issued by the Directorate General of GST Intelligence (DGGI) to Infosys. The IT giant was alleged to have evaded taxes amounting to Rs 32,000 crore, sparking controversy within the industry. Nasscom, the leading trade association of the IT and business process management sectors in India, has also voiced concerns over the tax demand.
Infosys has since clarified its position, asserting that it has paid all its GST dues and that the taxes in question are not applicable to the expenses flagged by the DGGI. "Infosys is fully compliant with central and state GST regulations," the company said in a statement.
The issue has drawn sharp criticism, with former Infosys board member and Chief Financial Officer Mohandas Pai denouncing the tax demand as "tax terrorism at its worst."
Industry stakeholders, taxation experts, and firms are expected to closely monitor the upcoming Council meeting, seeking clarity on the application of GST laws, particularly in light of recent enforcement actions.