The most prominent highlight of the in-person Goods and Services Tax (GST) Council meeting, held on February 18, has been the consensus on establishing the much-awaited GST Appellate Tribunal. The council’s decision has sparked hopes for quicker disposal of GST-related disagreements that are burdening the courts. The government aims to finalise the draft by March 1, so that it can be included in the Finance Bill as the Budget session of the Parliament resumes. The air around the composition of the Principal Bench which will look into inter-state disputes, and the state benches that will deal with intrastate disputes, is still not very clear. Greater clarity will usher in as the time passes. Some reports suggest that the Principal Bench and state benches will consist of two technical and two judicial members each, with equal representation from the Centre and states. Following the approval of the proposal in the Parliament, the onus will lie on the state governments to set up the state benches in their jurisdiction area. The broader consensus on the formation of the Appellate Tribunal is indeed reassuring, though it has come after a prolonged delay. Also, it is just the first step forward. There is a lot of ground to cover when it comes to resolution of GST-related disputes. Notably, a major source of dispute has been the complexity of the indirect tax regime, which is still far from being simplified. Almost six years have passed since the incorporation of the GST regime in the Indian economy, but it still carries the burden of unfixed anomalies. It is true that lately the revenues from GST have seen a remarkable uptick but that has only served as a cover to the inherent flaws of the system. Certain anomalies highlighted by the Group of Ministers (GOM) were fixed in June last year. But the restructuring of rate slabs was deferred, ostensibly due to inflationary concerns. The proposed rate rejig is most likely to add up to the payable taxes. Now, given that inflation still remains a haunting problem, the chances of prolonged continuation of GST anomalies appear pronounced. One is also tempted to ask whether the government will risk burdening the people’s pocket in a year of elections, particularly when general elections are around the corner? While the revenues from GST have been robust for many months, they may still be below the optimal level. With the chances of rate rationalisation delayed further, the remedy still remains elusive. Other highlights of the 49th GST council meeting include reduction of GST rate on rab from 18 per cent to 5 per cent if sold pre-packaged, and nil if sold in the loose form. Pencil sharpeners will also get cheaper as the GST rate on them has been reduced from 18 per cent to 12 per cent. Exemptions given to educational institutions and Central and state educational boards for the conduct of entrance examination to any authority, board, or body set up by the Central or state governments has also been extended. Similarly, GST on certain services provided by courts under the reverse charge mechanism (RCM) has been extended. In another positive development, the GST council acted upon the recommendations of GoM on plugging revenue leakages for sectors such as pan masala and gutkha. On the flip side, however, certain major decisions were deferred. The GST Council failed to cut the rates on cement which, unfortunately, is placed under the highest tax slab of 28 per cent. The decision on reducing the GST rate on millets was also left in limbo, despite the government being enthusiastic about popularising millets as a new staple. The GoM’s recommendation on online gaming, casinos and horse racing was also left untouched. Indeed, the enactment or deference on these aspects will affect the lives of common masses, but the broader concern still should be to streamline the system of GST by rationalising rates. It will be interesting to see how the government balances between election considerations and GST revenues.