GST Council meeting today: What to expect on reforms, decriminalisation

The Goods and Services Tax (GST) Council held its 57th meeting, focusing on decriminalisation, process reforms, and compliance improvements. The meeting aimed to address concerns from major states over the reduction of taxmen's arrest powers, which could lead to unnecessary leverage over businesses. The Council proposed resolving disputes through civil consequences such as tax recovery, interest, and penalties, with prosecution available for serious violations. The threshold for prosecution was expected to be increased from Rs 1 crore to Rs 5 crore.

Process reforms were a key focus, with the aim to leverage technology and data for smoother compliance. Registration processes were streamlined to grant 61% of registrations within three working days, with remaining cases to be handled without unnecessary queries and rejections. Refunds were proposed to be acknowledged within 10 days, with 90% released on risk checks and a common standard for notices, hearings, and orders in litigation.

A buyer who pays his supplier in full should retain his credit, regardless of other parties' payments.

Structural reforms were also discussed, including easing the registration process, making business closure as simple as starting one, and expanding service exports. The Council also aimed to align GST laws with practical implementation, such as considering e-commerce and service exports.