GST Council reforms address key industry concerns, focus shifts to implementation, says Dept of Revenue official
During the 57th GST Council meeting, significant recommendations were made to address concerns from stakeholders. The government plans to implement these reforms collectively with state administrations to ensure uniformity. A working group will review issues related to input tax credit eligibility and supplier tax payments, aiming to relieve genuine taxpayers. The Bangalore Chamber of Industry…
The 57th GST Council meeting recommendations, unveiled on October 8, aimed to tackle issues raised by stakeholders through extensive government consultations, according to K Balasubramanian, Joint Secretary in the Department of Revenue, Ministry of Finance. Speaking at an interactive session organized by the Bangalore Chamber of Industry and Commerce (BCIC), Balasubramanian highlighted that the focus would now shift towards implementing the Council's proposals and ensuring uniform adoption among states.
Concerns regarding e-way bill removal were discussed, with a working group examining the issue thoroughly. Balasubramanian explained that e-way bill data aids logistics planning and provides valuable economic forecasting data to organizations such as the Reserve Bank of India and statistical authorities. However, he acknowledged potential misuse, and proposed reforms aim to prevent arbitrary interception of goods vehicles by mandating specific intelligence inputs and approval from an officer of Joint Commissioner rank or above, as well as restricting checks to transit states.
Regarding Section 16(2)(c) of the GST law, Balasubramanian stated that the Council had referred the issue to an officers committee, which would submit recommendations within three months. He assured that genuine taxpayers compliant with statutory requirements should not face undue hardship.
The government is also working on broader simplifications, including registration, refunds, dispute resolution, and cancellation procedures, alongside GST rate rationalisation. GST revenue growth in the second quarter reached approximately 15%, and overall taxable supplies have grown by 26% between October and August compared to the same period a year earlier. Training programs are underway to support implementation, tracked through management information systems.
BCIC President CA K Ravi emphasized that simplifying compliance, enhancing policy clarity, and facilitating seamless trade remain central priorities. The chamber has submitted 13 recommendations, seven of which were considered by the 57th GST Council, such as allowing input tax credit (ITC) on employee insurance and eliminating interest liability on reversed ITC.
The chamber plans to continue engaging with the government on matters like SEZ refund applications, invoice endorsements, and real estate valuation. The dialogue underscored the necessity of ongoing government-industry collaboration to foster a more trustworthy, automated, and simplified GST regime.
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