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Centre Sees Limited Scope for GST Rate Changes and Fuel Tax Reviews
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CNBC TV18•13-10-2026, 23:48
Centre Sees Limited Scope for GST Rate Changes and Fuel Tax Reviews
- •The Centre sees limited scope for further discussions on GST rates as most current proposals seek tax concessions rather than rate changes.
- •The GST Council agreed to implement rate changes once a year, effective from the beginning of the financial year on April 1.
- •Petroleum products may only be considered for GST once the tax system becomes more robust and geopolitical economic impacts ease.
- •Instead of rate changes, the Centre and states are focusing on increasing GST registrations to expand the current tax base.
- •A restructured officers panel will subsume existing fitment and law committees, with state representation determined by their GST footprint.
Key Questions Answered
The GST Council agreed to consider changes to tax rates only once a year, with adjustments taking effect from the beginning of the financial year on April 1.
Representation on the new panel will likely be determined by each state's GST footprint, including their revenue contribution and total number of taxpayers. Five states—Maharashtra, Uttar Pradesh, Tamil Nadu, Karnataka, and Gujarat—will have fixed representation.
GST on petroleum products may be considered only if the tax system becomes more robust and the economic impact of geopolitical events eases, as states require petroleum as a major tax lever.
