New Delhi, August 29, 2026 (Yes Punjab News)
As India’s Goods and Services Tax (GST) enters its second decade, the 57th meeting of the GST Council could set the direction for the next phase of reforms, with businesses seeking greater certainty, simpler compliance and fewer tax disputes.
According to Manoj Mishra, Partner and Tax Controversy Management Leader at Grant Thornton Bharat, the reform agenda should increasingly focus on building trust and predictability rather than simply expanding the tax base.
Six key areas are likely to remain central to the discussion.
Reducing GST litigation: The Supreme Court’s judgment in the Gameskraft case has created significant uncertainty for the online gaming sector. Tax demands are estimated at nearly Rs 2.5 lakh crore following the court’s treatment of online gaming, fantasy sports and casino activities as betting and gambling and its decision to uphold GST on the full face value retrospectively from July 1, 2017. Review petitions have been filed against the judgment.
Mishra said Section 11A of the CGST Act could potentially provide a mechanism to regularise tax positions arising from generally prevalent trade practices.
Protecting input tax credit: Businesses continue to face disputes over input tax credit (ITC) where a purchaser’s eligibility can depend on whether the supplier has deposited the tax. The Council could consider a safe harbour for recipients who possess valid tax invoices, have received the goods or services, made payments through banking channels and acted without collusion.
Resolving legacy credit issues: With compensation cess on specified goods recommended for discontinuation from February 1, 2026, businesses are seeking clarity on credits accumulated under the earlier regime.
Bringing petroleum products under GST: Petrol, diesel, aviation turbine fuel and natural gas remain outside GST. Their inclusion could address multiple layers of taxation and embedded costs affecting manufacturing, logistics and transportation.
Clarifying digital economy taxation: The application of Section 9(5) of the CGST Act to app-based passenger transportation has raised questions as platform-based business models evolve. A functional test based on the degree of control and involvement exercised by platforms could provide greater certainty.
Simplifying registration and compliance: The Council may also need to clarify whether platform-based passenger transport operators must obtain GST registration in every state where drivers operate or whether a centralised compliance mechanism can be permitted.
Together, these reforms could help make GST more predictable and reduce compliance-related uncertainty as India enters the second decade of its indirect tax regime.
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