GST Council eyes streamlined structure, plans to consolidate advisory panels

The GST Council is exploring a significant restructuring of its governance framework to enhance operational efficiency and reduce administrative complexity. Under the proposed arrangement, the current system of multiple committees and sectoral panels would be consolidated into a streamlined three-tier structure comprising the GST Secretariat, an implementation committee, and a unified standing committee.

The move reflects growing recognition among tax administrators that the existing committee structure has become unwieldy, with numerous overlapping bodies handling sector-specific issues and technical matters. The Fitment Committee, which has been instrumental in determining tax classifications for various goods and services, is expected to be dissolved as part of this consolidation.

The new structure would centralise advisory and implementation functions while eliminating redundancies that have accumulated since GST's implementation in 2017. A single standing committee would replace the various existing panels, allowing for more cohesive and coordinated policymaking on indirect taxation matters.

This restructuring comes as the GST Council continues to refine the tax architecture that governs India's $3.7 trillion economy. The proposed changes are expected to expedite decision-making processes and provide greater clarity to businesses navigating the complex indirect tax regime.