GST Council likely to review rate overhaul; broad cuts unlikely at October meeting
The GST Council is expected to assess the impact of its 2025 rate rationalisation at its October 7 meeting. Broad-based reductions look unlikely, though the 18% levy on mobile phones, refunds, compliance and input-tax issues may be reviewed.
What happened
GST Council is expected to review the impact of 2025 rate rationalisation before considering fresh cuts. Broad reductions appear unlikely, though the 18% GST
Key facts
- 57th GST Council meeting
- October 7, 2026
- 5% and 18% GST slabs
- 40% special rate
- ₹1.96 lakh crore October 2025 gross GST collections
- ₹22.27 lakh crore FY26 gross GST revenue
- 8.3% FY26 growth
- ₹2.11 lakh crore July gross GST revenue
- 15.4% July growth
- ₹1.998 lakh crore August gross GST revenue
- 14.8% August growth
- ₹10.43 lakh crore April-August collections
- 11% April-August growth
- 18% GST rate on mobile phones
Why this matters
In transaction and partnership diligence, model GST policy as a category-specific upside rather than a base-case benefit, with particular attention to input-tax credits, refunds and compliance exposure.
What to watch
- October 7 GST Council agenda, fitment-committee recommendations, and post-meeting notifications.
- GST collection trends, compensation/revenue outlook, and evidence of demand weakness or consumer inflation pressure.
- Any explicit proposal concerning the 18% mobile-phone rate or broader consumer-electronics classification.
- Announcements on inverted-duty refunds, input-tax-credit eligibility, e-invoicing, and compliance simplification.
- Brand and retailer promotional intensity following the meeting, indicating whether anticipated relief is being pre-priced into discounts.
- Maintain current list prices and avoid budgeting for an across-the-board GST pass-through before the meeting.
- Build category-level scenarios for mobile phones, consumer electronics, and any assortment with material inverted-duty or input-tax-credit exposure.
- Prepare rapid price, promotion, and channel-margin playbooks for a targeted tax cut, especially for festive and year-end demand periods.
- Audit refund ageing, blocked credits, classification positions, and vendor invoice compliance to capture any procedural relief quickly.
- Coordinate with suppliers and marketplaces on tax-benefit sharing rules so any rate change does not create margin leakage or pricing disputes.