New Delhi: The GST Council is expected to focus on process reforms and the implementation of the recent rate rationalisation when it meets on October 7, with no major fresh changes to GST rates currently anticipated, according to Finance Ministry sources.

The 57th GST Council meeting is expected to review how the rate changes introduced after the previous round of rationalisation have been implemented and consider measures to address practical difficulties faced by taxpayers.

Rather than another broad-based exercise involving GST rate cuts, the Council is likely to concentrate on improving compliance processes and resolving implementation-related issues.

Finance Minister Nirmala Sitharaman had earlier said that the October 7 meeting would take up process reforms under “GST 2.0”, including issues related to e-invoicing and input tax credit (ITC) rules.

GST Council to review rate rationalisation

The previous GST Council meeting focused on rate rationalisation, while process reforms were deferred for consideration at the October meeting.

The next meeting is therefore expected to assess the experience of the revised GST structure and examine whether further changes are required based on implementation.

The government’s next-generation GST reforms, announced as GST 2.0, included a simplified rate structure and changes aimed at making compliance easier for businesses. The revised rates came into effect on September 22, 2025.

With the major rate rationalisation already undertaken, expectations of another significant overhaul of GST rates ahead of the October 7 meeting are relatively subdued.

The Council could instead examine bottlenecks involving registration, returns, refunds and input tax credit, areas that have been under consideration as part of the broader effort to simplify GST compliance.

E-invoicing and ITC rules in focus

One of the key areas expected to come up for discussion is e-invoicing.

Sitharaman has indicated that the Council’s process-reform agenda will include e-invoicing and input tax credit rules. The discussions could cover ways to simplify compliance while strengthening the GST system’s ability to prevent misuse.

ITC rules have remained an important issue for businesses because restrictions and procedural requirements can affect the timing and availability of tax credits.

The Council is also expected to consider implementation-related concerns emerging after the latest rate changes, rather than immediately introducing another large-scale restructuring of the rate framework.

GST 2.0 enters implementation phase

The next meeting comes roughly a year after the GST Council approved its next-generation reforms.

The reforms moved the GST structure primarily towards 5% and 18% slabs, while a 40% rate was introduced for specified luxury and sin goods. The government also announced measures intended to simplify registration and return filing, speed up refunds and reduce compliance costs.

The October meeting will provide an opportunity to examine how these measures have worked in practice.

Any further recommendations from the Council would subsequently have to be implemented through the appropriate notifications, rules or legislative amendments, depending on the nature of the decision.

Five-day banking week remains unresolved

Separately, the Finance Ministry has not committed to implementing a five-day working week for banks, with the demand continuing to be pursued by bank employee unions.

The United Forum of Bank Unions (UFBU) has called a three-day nationwide strike from September 28 to 30, with the five-day workweek among its demands. The government has said discussions and conciliation efforts have continued, but the issue remains unresolved.

The Finance Ministry has also said that an indefinite strike has been proposed from October 26 over the same demand.

The government had earlier decided to keep the Performance Linked Incentive scheme in abeyance, addressing one of the unions’ two principal demands. The five-day workweek remains the outstanding issue cited by the unions.

Public sector banks to remain open on September 27

To reduce disruption for customers ahead of the proposed three-day strike, the government has approved Sunday, September 27, 2026 as a working day for all public sector banks and regional rural banks.

The Reserve Bank of India has approved the operation of bank branches, offices, ATM-linked branches and currency chests on that day.

The move is intended to prevent an extended interruption in banking services, as September 26 is the fourth Saturday and September 27 would ordinarily have been a Sunday holiday before the three-day strike begins on September 28.

The Finance Ministry has appealed to bank unions to defer the proposed strike and said measures have been taken to ensure essential banking services remain available.

What to expect from the October 7 GST meeting

For businesses and taxpayers, the October 7 GST Council meeting is likely to be more focused on how the existing GST framework works than on another major round of rate changes.

The Council is expected to take stock of the implementation of the previous rate rationalisation and examine process-related reforms, particularly those concerning e-invoicing, input tax credit and other compliance mechanisms.

While further changes cannot be ruled out until the Council formally considers the agenda and announces its recommendations, Finance Ministry indications suggest that process reforms will be central to the upcoming meeting.