The 57th GST Council meeting is scheduled for September 12 in New Delhi, with an officers' meeting set for September 11, according to the official notice issued by the GST Council Secretariat. As per the memorandum issued on August 28, the meeting will begin at 11:00 AM onwards on Saturday, September 12. The officers' meeting will precede it on Friday, September 11, also starting at 11:00 AM in New Delhi. The memorandum, signed by Arvind Shrivastava, Secretary to the Government of India and ex-officio Secretary to the GST Council, states that details of the venue and agenda items for both meetings will be communicated in due course. The memorandum has been marked to the offices of the Union Finance Minister and the Minister of State for Finance, with a request to brief them about the meeting. It has also been sent to the Chief Secretaries of all state governments, Union Territories including Delhi, Puducherry and Jammu and Kashmir, with a request to inform the respective Finance or Taxation Ministers. The Chairman of the Central Board of Indirect Taxes and Customs has also been invited as a permanent invitee to the proceedings of the Council, as reported by NDTV Profit.
The Council is set to consider simplification of GST registration for businesses passing on tax credit of more than ₹2.5 lakh a month, addressing a key concern that has created uncertainty among taxpayers. At present, central GST formations and various state formations do not follow a uniform procedure for granting GST registration to large businesses that pass on credit exceeding ₹2.5 lakh a month. This inconsistency has created significant uncertainty among taxpayers who are currently required to navigate different registration processes across different states. The meeting comes after a gap of more than a year, with the 56th GST Council meeting held on September 3-4, 2025, when the Centre and states decided on a major restructuring of GST rates and slabs.
The Council is also expected to consider automation and other changes in the process of GST registration cancellation, marking a significant step toward digitization of GST operations. The automated cancellation process is designed to streamline the current manual system and reduce processing delays. This initiative aligns with the government's broader digital transformation agenda and aims to improve taxpayer experience by reducing bureaucratic delays and providing more transparent and efficient services. The automated system is expected to reduce the time and effort required for cancellation processes while maintaining the necessary compliance checks and ensuring proper documentation is maintained.
Grocery spending in India's household budgets fell 8% in 2026 from 2025, even as rent costs surged 21%, according to The Great Indian Wallet 4.0 2026 study by Home Credit India. The findings reveal how GST 2.0 has brought price relief to some everyday expenses while other essential costs continue to rise. Households with an average monthly income of ₹35,000 are using the additional financial headroom selectively, particularly on food quality, education, and savings rather than splurging on discretionary items. The contrast between falling grocery bills and rising rents captures the changing nature of household budgets, with households using relief to maintain financial stability rather than immediately increase consumption.
Groceries remain the biggest monthly household expense at ₹8,505 in 2026, accounting for 25% of the wallet, though spending was down 8% from 2025 with its wallet share falling by four percentage points. Rent costs moved in the opposite direction, reaching ₹6,965 per month in 2026, now accounting for 21% of essential spending after rising 21% from the previous year. Children's education remains another major anchor with households spending ₹6,604 a month in 2026, or 20% of their essential budget, with spending on education rising 12% from 2025. The study found that households reported lower prices across all categories after GST 2.0 implementation, with the 19% reported price relief in food and groceries and 21% in medicines and healthcare being particularly significant for recurring expenses.
The Council is likely to consider easing restrictions on input tax credit (ITC) blocked under Section 17(5) of the Central Goods and Services Tax (CGST) Act, which covers specified goods and services on which credit is currently not available. The provision covers several categories including motor vehicles, food and beverages, outdoor catering, beauty treatment, health services, club memberships, and certain travel-related benefits, subject to specified exceptions. ITC is also restricted on goods and services used for construction of immovable property. Industry has argued that these restrictions can result in tax costs being embedded in business expenditure, particularly where goods or services are used for business purposes. Any easing of Section 17(5) could reduce such credit blockages and lower the working-capital burden on businesses.
A majority of respondents (61%) said their spending or saving behaviour had not changed, indicating that many households are using the relief to maintain financial stability rather than immediately increase consumption. Among the 39% who changed their spending or saving behaviour, 12% said they were saving more, while another 12% spent more on food quality. Around 9% increased spending on their children's education, and 7% spent more on health, showing where households chose to direct the additional financial headroom. The measures, if approved, could provide relief to businesses facing accumulated tax credits and working-capital blockages under the GST regime, according to experts.
According to Vivek Jalan, partner with Tax Connect Advisory Services, key areas awaiting deliberation include legal and technology amendments to safeguard bona fide recipients of input tax credit when suppliers default, an issue underscored in the Maruti Enterprises ruling and affirmed by the Supreme Court in Bhandari Scrap Traders. Reforms in GST refunds under the inverted duty structure, particularly for input services, are vital to ease industry costs and benefit consumers. The Council is also expected to consider mechanisms for seamless transfer of ITC across states for multi-state taxpayers, and rationalisation of blocked credits on construction and works contracts, as highlighted in the Safari Retreats case. These reforms, once taken up, will further strengthen the GST regime, enhance fairness, and improve competitiveness, reflecting the government's commitment to progressive and industry-friendly taxation.
