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GST Council To Focus On Tax Framework Efficiency And ITC At Upcoming 57th Meeting
M
Moneycontrol•06-10-2026, 14:44
GST Council To Focus On Tax Framework Efficiency And ITC At Upcoming 57th Meeting
- •The GST Council is shifting its focus from rate-setting to the quality and efficiency of the tax framework at its upcoming 57th meeting on October 7, 2026.
- •Key agenda items include discussions on corporate guarantee taxation, input tax credit on employee vehicles and group insurance, and centralized registrations for small businesses.
- •Proposals also cover centralized audits for large multi-State taxpayers, clarity for app-based aggregators in the gig economy, and addressing inverted duty structures.
- •Technology-driven measures such as faceless assessments, automatic registrations, and potential ITC transfers between group entities are under review to modernize administration.
Key Questions Answered
The 57th GST Council meeting, rescheduled to 7 October 2026, is expected to focus on safeguarding input tax credit (ITC), simplifying registrations, streamlining refunds, corporate guarantee taxation, and app-based aggregators.
Under Rule 28(2) of the CGST Rules, corporate guarantees between related parties are valued at 1% of the guaranteed amount or the actual consideration, whichever is higher, though exemptions for intra-group financial guarantees are under consideration.
The GST Council may consider introducing a single centralised registration for eligible small multi-state businesses and a centralised audit and assessment approach for large multi-state taxpayers to reduce compliance costs and duplicate proceedings.
