📷 Image: Wikimedia Commons / Ministry of Finance, Government of India
Business
GST Council to consider compensation for states, 90% ITC refund automation on Sept 12
✍️ A2Z Taxcorp LLP
🗓 06 Sep 2026, 05:18 PM
👁 6
The GST Council meeting on September 12 will address opposition states' demand for compensation and a proposal to automate 90% of ITC refunds.
The GST Council is set to convene on September 12, with two key items on the agenda: a request from several opposition states for compensation linked to recent GST reforms, and a proposal to automate ninety percent of input tax credit (ITC) refunds.
The compensation demand arises from concerns that the latest changes have dented the revenue collections of states that opposed the reforms. Delegates from these states are expected to present their case before the council, seeking a financial remedy.
At the same time, the council will examine a technical plan to automate the majority of ITC refunds, aiming to speed up credit flow to businesses and ease compliance burdens. Officials say the move could improve liquidity for taxpayers if approved.
The compensation demand arises from concerns that the latest changes have dented the revenue collections of states that opposed the reforms. Delegates from these states are expected to present their case before the council, seeking a financial remedy.
At the same time, the council will examine a technical plan to automate the majority of ITC refunds, aiming to speed up credit flow to businesses and ease compliance burdens. Officials say the move could improve liquidity for taxpayers if approved.