Stories
GST Council Meeting Today: Fast Refunds, MSME Relief and Major Reforms on Agenda
- •The 57th GST Council meeting is being held today to discuss simplifying the GST system, faster tax refunds, and easing compliance for businesses.
- •Proposals include removing the power of tax authorities to make arrests under Section 69 and eliminating certain offenses from the serious category.
- •The definition of export of services may be broadened to benefit Global Capability Centers and avoid the 18 percent GST on certain foreign transactions.
- •A new proposal suggests approving 90 percent of GST refund claims within 10 days using automated data from customs and banking systems.
- •Relief for the agricultural sector includes considering GST exemptions for seed storage and warehousing, and placing psyllium seeds under a zero tax rate.
Key Questions Answered
The GST Council is considering removing arrest provisions under Section 69 and stripping tax authorities of their power to make arrests during investigations. Offences could be moved out of the serious category to reduce strictness and address disputes through recovery of tax, interest, and penalties instead.
The proposed reforms aim to expedite tax refunds by acknowledging claims within 10 days and automatically releasing 90 percent of the amount based on risk assessment. This automated, system-driven process is designed to reduce the current 60-day waiting period and ease working capital blockages.
The Council may broaden the definition of service exports to grant export status when Indian companies bill foreign clients through overseas branches. Under this proposed change, services provided by Global Capability Centers in India to foreign group companies will no longer attract the current 18 percent GST.
