State participates in 57th meeting of GST Council

SHIMLA 8 October, 2026

The 57th meeting of the GST Council was held under the Chairmanship of the Union Finance Minister Nirmala Sitharaman at Bharat Mandapam, New Delhi.

The Government of Himachal Pradesh welcomed the reforms proposed by the GST Council aimed at making the tax system more taxpayer-friendly and simplifying compliances. The proposed measures covering registration, return filing, refunds, assessment, adjudication and other processes are expected to make GST compliances simpler, more transparent and efficient.

The State also welcomed the proposals providing relief to small taxpayers and the measures relating to defence and CSD Canteens. The State-specific issue concerning the leasing of the right to collect toll was also deliberated upon, and the proposed GST exemption relating to the State’s toll collection mechanism was welcomed.

While supporting measures that facilitate genuine taxpayers, the State emphasised that GST reforms must maintain an appropriate balance between ease of compliance and effective enforcement. Proposals that could weaken enforcement, facilitate fraudulent practices or adversely affect legitimate revenue should be carefully reviewed to ensure that taxpayer facilitation does not come at the cost of revenue protection and prevention of tax evasion.

The State also raised the issue of full compensation for revenue implications arising from GST implementation, with a view to safeguarding the fiscal stability. It was reiterated that State revenues be protected by ensuring 14% year-on-year growth for five years and, thereafter, revenue protection should continue until the actual revenue of the State reaches the level of protected revenue determined for the fifth year.

The proposal for the constitution of a Group of Ministers (GoM) on Hilly States was reiterated to address the special concerns and requirements of hilly States.

Further, state highlighted the need to correct rate inversion in pharmaceutical sector by reducing taxation rate on APIs. Such rationalisation would help minimise the inverted duty structure, reduce the accumulation of input tax credit and associated refund claims, and provide further impetus to domestic API manufacturing and the pharmaceutical industry.