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GST Council To Consider Annual Rate Changes From April 1 And Major Reforms
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CNBC TV18•06-10-2026, 19:35
GST Council To Consider Annual Rate Changes From April 1 And Major Reforms
- •The GST Council may consider reviewing GST rates only once a year, with changes taking effect from April 1, though rate changes are not on the agenda for the upcoming October 8 meeting.
- •The meeting will focus on process and structural reforms, ease of doing business, fostering trust-based tax administration, and improving registration and refund speeds.
- •Proposals include removing a large number of offences from criminal provisions, reviewing tax officers' arrest powers, and shifting enforcement focus toward recovery of tax and penalties.
- •New measures for refunds aim to acknowledge applications within 10 days and clear them within seven days, while small e-commerce sellers may be verified in their home state.
- •The broader reform package is expected to be rolled out in phases through 2027 to provide greater stability and predictability for businesses.
Key Questions Answered
The GST Council may review a proposal to change GST rates only once a year, with any modifications taking effect from April 1 to provide greater stability and predictability for businesses.
The proposal aims to acknowledge refund applications within 10 days and clear them within seven days of acknowledgement. Additionally, about 90% of the refund could be released following a risk-based check utilizing customs and banking systems.
A proposed measure would allow small sellers on e-commerce platforms to be verified in their home state rather than requiring a registered place of business in every state where they sell goods.
