Many important decisions are expected to be taken at the meeting chaired by union finance minister Nirmala Sitharaman, according to official posts on social media platforms Twitter and Koo. Union minister of state for finance Pankaj Chaudhary and state finance ministers and senior officials are part of the meeting.

The meeting is an important milestone in the history of the 2017 indirect tax reform as it will set the direction of GST for future years. The GST compensation given to states by the central government is set to end by the end of this month and the Council is expected to approve a set of rule changes that will make the IT system and the regulatory architecture of GST more efficient in curbing tax evasion, according to an official, who spoke on condition of anonymity.

The Council is looking at a lengthy agenda which includes analysis of the revenue position of central and state governments, pruning the list of GST exempt items, fixing the tax anomaly of raw materials getting taxed more than the finished products, bringing clarity on the taxation of online gaming, casinos and horse racing and reworking the rules to make the tech-driven indirect tax system more effective.

The Council is expected to take a slew of decisions aimed at checking tax evasion and prevent dubious entities from taking GST registration. The two-day meeting is expected to give all states sufficient time to explain their positions on key issues including their fiscal positions.

The proposals before the Council include raising GST rate from 12% to 18% on items like printing, writing, drawing ink, certain knives, spoons and tableware, and drawing instruments. Also, a rate increase from 5% to 12% is expected on solar water heater and finished leather. Some rate changes in services are also expected.