Home / Business and Economy / GST Council to Streamline Tax Committees for Efficiency
GST Council to Streamline Tax Committees for Efficiency
5 Oct
Summary
- GST Council may reduce its committees to three consolidated bodies.
- New structure aims for political ownership and increased transparency.
- The indirect tax regime shows stability after nine years of settled rates.
Nine years after its implementation, the Goods and Services Tax (GST) Council is poised to streamline its administrative framework by recasting its tax officers' committees. The proposed overhaul aims to create a leaner structure, consolidating the existing numerous committees into three main bodies: a Secretariat, an Implementation Committee, and a single Standing Committee.
This strategic reform is motivated by the maturation of the GST system and the stabilization of its rate structure, achieved last year. The current extensive committee system, comprising a Secretariat, an Implementation Committee, eight standing committees, and 18 sectoral groups, is deemed excessive for the current phase.
The new Standing Committee will manage technical aspects, including amendments to laws and rules, simplification of procedures, and processing of trade and industry representations. Membership in this committee will be based on states' relative size in the GST system and will rotate every two years, ensuring broad participation and transparency.
This institutional reform prioritizes political ownership of proposals from inception and enhances transparency in their handling. The original extensive committee structure was necessary during GST's launch on July 1, 2017, to address widespread concerns across sectors and manage tax rate proposals. The current proposed changes signal a shift towards a more settled and efficient indirect tax administration.
