The upcoming GST Council meeting, expected to take place in New Delhi, is set to address significant issues such as GST rate rationalisation and the future of the compensation cess, according to top government sources.
The meeting, anticipated in the coming weeks, is being closely watched by states seeking clarity on their revenue outlook ahead of the next fiscal planning phase. Sources indicate that the central government is committed to simplifying the current GST framework and correcting irregularities in the existing tax slab structure.
One of the key items on the agenda is the compensation cess, which was originally introduced to compensate states for revenue shortfalls following the implementation of the GST in 2017. With its official expiry approaching in 2026, discussions around its continuation or phased withdrawal are gaining momentum.
JSW-Bhushan Steel Case: IBC Framework Remains Intact, Say Officials
In response to the Supreme Court’s verdict on the high-profile JSW-Bhushan Steel case, government officials have reaffirmed the strength of the Insolvency and Bankruptcy Code (IBC). While the ruling highlighted some procedural issues in implementation, it does not undermine the legal foundation of the IBC.
A senior official noted that the Supreme Court acknowledged execution gaps but did not question the core principles of the code. The government has yet to make a decision on whether a review petition will be filed in response to the verdict.
US ‘Big Beautiful Bill’ May Influence Remittance Flows
Government sources are also monitoring developments related to the US immigration bill, popularly known as the “Big Beautiful Bill.” Though it could have implications for inward remittances to India, officials say no official assessment has been conducted yet.
“It’s an evolving situation. While it’s something we’re watching closely, more data will be needed before we can quantify any potential impact on remittance inflows,” a source stated.
Indian Economy on Stable Footing; Monsoon Expectations Positive
The broader economic outlook remains strong, with all major global credit rating agencies expressing optimism about India’s growth trajectory. Consumption-driven sectors are witnessing steady growth, fueled by positive monsoon forecasts for the upcoming season.
“All current indicators point towards a favorable monsoon, which is a key factor for rural demand and agricultural output,” said a senior government official, further reinforcing confidence in the country’s economic stability.