GST process reforms pin hope on data, tech to ensure compliance

The Goods and Services Tax (GST) Council will meet on October 7 to discuss significant process reforms aimed at ensuring compliance through technology and accurate data, according to officials. These reforms are considered crucial for stabilizing the indirect tax regime over the next five to six years. Key proposals include removing the power to arrest businesses through GST officers, increasing the prosecution threshold from Rs 1 crore to Rs 5 crore, and removing the minimum sentence for penalties.

Notices will only be issued for transactions over Rs 10,000, benefiting small businesses by reducing the administrative burden. Additionally, the Council will consider redesigning processes for four major tax interactions: registration, returns filing and correction, refunds, and demand settlement. Notably, the export of services will be redefined to align with existing practices, allowing industries like testing laboratories to qualify for export treatment, which could significantly expand India's export potential.