GST Council to Review Year‑Long Rate Rationalisation; Broad Cuts Unlikely in October Meeting

The much‑anticipated 57th GST Council meeting, originally slated for September 12, has been pushed back to October 7 in New Delhi. Tax officials will gather on October 5‑6 for preparatory talks, after which the Council will set a formal agenda.

Nearly a year has passed since the government overhauled the GST slab structure – moving from the four‑tier system of 5%, 12%, 18% and 28% to a simplified 5% and 18% regime, plus a special 40% rate for a handful of luxury and sin items. The Council now wants to take stock of how that rationalisation has played out on the ground.

Early numbers are reassuring. Gross GST collections hit ₹1.96 lakh crore in October 2025, the first full month after the new rates took effect, marking a 4.6% year‑on‑year rise. Subsequent months have shown a steady climb – ₹1.75 lakh crore in December, ₹1.93 lakh crore in January, and a jump past the ₹2 lakh crore threshold in March. For the full fiscal year FY 26, GST revenue reached ₹22.27 lakh crore, an 8.3% increase over FY 25.

The upward trend has even accelerated this year. July’s collection set a record at ₹2.11 lakh crore, up 15.4% YoY, while August followed with another 14.8% gain. From April to August, total GST receipts rose 11% to ₹10.43 lakh crore. Notably, domestic GST grew 9.3% in August, but GST on imports surged a striking 29%.

Against this backdrop, insiders say the Council is likely to preserve the gains rather than launch another broad‑based rate cut. States are still digesting the revenue implications of the 2025 reform, and the broader economy faces external headwinds, from the West Asia geopolitical flare‑up to lingering global uncertainties.

That doesn’t mean the meeting will be dull. Some product‑specific proposals may surface – the most talked‑about being the 18% GST on mobile phones, a sector where demand has softened. While not yet on the confirmed agenda, the Council could entertain a targeted adjustment if it deems it necessary.

Beyond rates, the Council is expected to wrestle with lingering issues: input‑tax credit glitches, registration bottlenecks, refund delays, compliance challenges, and dispute‑resolution mechanisms. A review of any further customs‑related rationalisation will also attract close scrutiny from industry players.

In short, the October session will be a reality‑check on whether the 2025 rate cuts have really translated into cheaper consumer prices and stronger demand. Only after that assessment will the Council consider any fresh, sweeping changes to the GST structure.