No GST Council Meeting Yet in 2025: What's Causing the Delay?

As of mid-May 2025, the GST Council—India’s apex body for shaping the Goods and Services Tax framework—has yet to announce its first meeting of the year. The last session was held way back on June 22, 2024, leaving a nearly year-long void in formal discussions. This unusual delay has sparked growing curiosity and concern across industries, economic policy circles, and state governments.

 

Why the delay? What could be brewing behind closed doors? And more importantly—what's likely to be on the agenda when the Council finally meets?

 

Let’s unpack it all.

 

Why the Delay is Raising Eyebrows

The GST Council plays a pivotal role in deciding tax rates, reviewing slab structures, recommending compliance reforms, and ironing out state-Center revenue-sharing issues. A prolonged silence can stall necessary reforms, delay relief for businesses, and create uncertainty in policy planning.

 

Businesses are growing anxious, especially with economic pressures mounting—from inflation to sectoral downturns. This makes the absence of a 2025 meeting particularly noteworthy.

 

What’s Likely on the Table When the GST Council Meets?

 

Rethinking GST Slabs and Tax Rates

India’s current four-tier GST structure (5%, 12%, 18%, and 28%) has long been criticized for being too complex. There’s been ongoing pressure to simplify the system. The Council could explore:

 

Merging slabs to reduce ambiguity and compliance challenges.

 

Lowering rates on essential goods to boost affordability.

 

Sector-specific tweaks, especially in high-growth areas like EVs, renewable energy, and healthcare.

 

State Compensation: Will the Center Keep the Tap Open?

The official five-year compensation period to states ended in 2022. Yet, many states are demanding continued support, especially those facing fiscal stress.

 

Potential solutions might include:

 

Extending compensation for a few more years.

 

Creating a new revenue-sharing mechanism that balances central and state interests.

 

MSME-Friendly GST Compliance

Small and medium businesses remain the backbone of India’s economy—and the current GST compliance structure is often too burdensome for them.

 

Likely reforms include:

 

Simpler return filing systems.

 

Use of AI-powered tools on the GSTN portal to reduce errors and human effort.

 

More flexibility and handholding for small enterprises.

 

Cracking Down on GST Evasion

Tax evasion continues to be a concern under GST. Expect the Council to strengthen anti-evasion strategies with:

 

New data analytics tools to detect fraud patterns.

 

Enhanced powers for GST officers.

 

Stricter rules around input tax credit claims to minimize misuse.

 

GST on Online Gaming & Crypto

The digital economy is booming, but regulatory clarity is still evolving. Expect important discussions on:

 

Defining and taxing online gaming, betting, and fantasy platforms.

 

Establishing clear GST guidelines for crypto transactions, especially given global trends toward digital asset regulation.

 

Jammu & Kashmir: A Fully Integrated GST Zone?

Post the revocation of Article 370, there’s ongoing work to align J&K’s tax structure fully with the national GST regime. The Council may deliberate on:

 

Administrative integration of J&K into the national portal.

 

Special provisions to support business and compliance in the region.

 

Conclusion: The Road Ahead for GST

The absence of a GST Council meeting in 2025 doesn’t mean nothing is happening—it may reflect a pause for deeper coordination, political alignment, or even a strategic reset. But such a long silence isn’t ideal when economic pressures are real and businesses need clarity.

 

Whenever the Council reconvenes, expectations will be high. From rationalizing tax rates to regulating crypto and digital services, the agenda is likely to shape the future of India's indirect tax landscape. Timely and transparent dialogue will be key to restoring business confidence and maintaining the momentum of GST reform.