GST Council to meet on September 9; compensation plan could run till FY26

The all-powerful Goods and Services Tax (GST) Council is expected to present a roadmap for the compensation levy that is likely to continue “well into” 2025-26 (FY26) at its upcoming meeting on September 9, and also discuss whether it should eventually be replaced with a tax or a levy, government officials say.

An internal assessment, based on the results of these studies, shows that the compensation levy should continue until FY 2026 to cover the estimated shortfall of Rs 1.37 trillion as of March 2025.

The GST Council, headed by Union Finance Minister Nirmala Sitharaman and comprising all state finance ministers as members,