New Delhi: The Goods and Services Tax (GST) Council will meet on 12 September, according to an office memorandum reviewed by Mint.
The 57th meeting of the GST Council will be held in New Delhi from 11 am, according to an office memorandum issued by the Council Secretariat on 28 August, a copy of which is with Mint. An officers’ meeting will be held a day earlier, on 11 September, also from 11 am. The venue and agenda for both meetings will be communicated separately, the memorandum said.
Mint reported on 28 August that the Council is likely to meet in September and may consider reducing the 18% GST on mobile phones. In its 28 August report, Mint also stated that the meeting’s agenda was in the preparation stage.
Mint in its report also stated that the council is likely to examine the implementation of last year’s GST rate rationalisation, particularly whether the benefit of lower taxes has been passed on to consumers.
At its 56th meeting on 3 September 2025, the GST Council approved one of the biggest overhauls of the indirect tax regime since its introduction, moving towards a two-rate structure comprising a 5% merit rate, an 18% standard rate, and a 40% special rate for select demerit goods.
The rationalisation lowered taxes on a wide range of daily-use products, food items, medicines, automobiles, agricultural equipment and consumer electronics. GST on air conditioners and dishwashers, for instance, was cut from 28% to 18%, while televisions were brought under a uniform 18% rate. Mobile phones were left unchanged at 18%.
A March 2026 study by National Institute of Public Finance and Policy (NIPFP) professor Sacchidananda Mukherjee and research fellow Shivani Badola found mixed evidence on the transmission of GST cuts to consumers.
The study noted that the average CPI (consumer price index) for medicines increased from 103.86 in May-August 2025 to 104.26 in October 2025-January 2026, despite many medicines moving into the exempt or 5% GST categories.
The CPI for shampoo and related hair products rose from 103.30 to 104.40, while toothpaste, mouthwash and toothbrushes increased from 103.19 to 103.92 during the same periods.
The trend was more pronounced for some personal-care products. The CPI for hair oil and hair colour rose 2.77% from 104.73 to 107.64, while the CPI for body powder, cream, body lotion, and moisturisers increased 1.14% from 104.55 to 105.73.
However, the study also found evidence of price transmission in some categories. Air-conditioner prices fell 6.4%, and motor car and jeep prices fell 7.52% between the two periods, while motorcycle and scooter prices declined 5.19%.
“Key areas awaiting deliberation include legal and technology amendments and enhancements to safeguard bona fide recipients of Input Tax Credit (ITC) when suppliers default—an issue underscored in the Maruti Enterprises ruling and affirmed by the Supreme Court in Bhandari Scrap Traders,” Vivek Jalan, partner at Tax Connect Advisory Services LLP, a multi-disciplinary consulting firm.
Simplifying GST refunds on input services will lower costs for both businesses and consumers, Jalan said, adding that the council is also likely to improve cross-state tax credit transfers and ease restrictions on construction-related credits. Ultimately, these updates will make India’s tax system fairer, more competitive, and business-friendly.
