GST Council to meet on Sept 9; compensation roadmap may stretch into FY26

GST Council agenda includes tax relief for foreign airlines, and clarity on a host of items such as car seats

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

An internal assessment, these officials reveal, suggests that the compensation cess needs to continue till FY26 to meet the estimated shortfall of Rs 1.37 trillion as of March 2025.

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