GST Council clears big procedural overhaul, keeps rates largely unchanged

The Goods and Services Tax (GST) Council, led by Finance Minister Nirmala Sitharaman, approved significant procedural changes to India's indirect tax system on Thursday, while keeping tax rates largely unchanged. The aim was to enhance stability, unlock working capital for businesses, and simplify compliance. The council discussed expanding refunds, reducing officer powers to arrest tax evasion suspects, shifting verification to system-led risk rules, and establishing an officers' committee to address honest buyers' credit issues.

The committee's report is expected within three months, with further implementation planned for April. Additionally, refunds will now extend to input services and capital goods, and the GST notice and proceeding standardization across the country. Export benefits have been streamlined, and checks will primarily occur in the state of origin or destination.

The GST registration process has been shortened to three working days, and a new resource-origin and ecological equalization framework has been proposed to recognize states contributing to national energy integration.