Stories
GST Council Meeting: 3 Big Decisions Likely To Impact Business And Pocket
- •The GST Council meeting is scheduled for October 8, focusing on procedural reforms to make the tax system more transparent and business-friendly.
- •The Law Committee has recommended abolishing special arrest provisions under Section 69 of the CGST Act to curb harassment.
- •Global Capability Centres and tech service exporters may receive relief by allowing certain services to be recognized as exports without 18 percent GST.
- •An automated, risk-score based system is proposed to release tax refunds directly into bank accounts within 7 days without human intervention.
- •The meeting will also address the utilization of about Rs 2500 crore cess stuck for automobile dealers and potential bans on small tax notices.
Key Questions Answered
The upcoming GST Council meeting will focus heavily on process reforms and ease of doing business, with proposals to decriminalize tax offenses by abolishing special arrest provisions under Section 69 of the CGST Act. Additionally, the Council may introduce a risk-score-based automatic refund system to release eligible refunds within seven days without human intervention.
Global Capability Centres (GCCs) and tech or engineering service exporters could receive a major relief by having their services recognized as exports rather than domestic services, preventing an 18 percent GST levy and allowing input tax credit refunds.
The agenda includes deciding on a time-bound system for utilizing or refunding approximately ₹2,500 crore of compensation cess input credit stuck in automobile dealers' electronic credit ledgers, alongside considering a complete ban on small tax notices under ₹10,000.
