GST Council

After process reforms, GST needs road map to shed exclusions

GST refunds under the fast-track route will require officer scrutiny if an earlier refund order is under dispute, potentially delaying working capital relief for businesses

September e-way bill generation rose 1.75 per cent from August to a record 141.53 million, as the GST Council proposed curbs on routine checks of goods moving by road.

From easier input tax credit claims to automated registration and a ₹40-crore cap on penalty-only appeals, the proposed changes seek to reduce compliance friction.

Measures ease compliance through simpler registrations, quicker refunds, wider tax credit access and relief on penalties and enforcement

The GST Council has proposed exempting storage and warehousing services for seeds meant for sowing, along with coffee-curing services provided by coffee curers to cultivators

The GST Council's changes to export definitions and refund rules are expected to benefit IT firms, consulting companies and GCCs by reducing tax disputes and working capital costs

Small online sellers can now use e-commerce platform warehouses to register in other states, while the GST Council has clarified tax treatment for platforms and retained existing rates

Transport industry bodies say the GST Council's decision to limit highway inspections to intelligence-based checks will reduce unnecessary stoppages, delays and penalties

Prime Minister Narendra Modi on Thursday welcomed the new round of GST reforms approved by the GST Council and said its focus was to take faster decisions, lower compliance costs and automated refunds. The prime minister also said that the GST Council's recommendations on removal of arrest provisions, greater decriminalisation and simpler procedures will have a very positive impact. The GST Council on Thursday approved removing the arrest power of tax officials and raising the threshold for prosecution fivefold to Rs 5 crore, while introducing faster and largely automated refunds for taxpayers. "I welcome the new round of GST reforms approved by the GST Council," Modi said in a post on X. "The focus is clear: Faster decisions. Lower compliance costs. Automated refunds. Trust-based administration," he said. Modi said these are in line with the government's constant efforts to make GST more efficient, transparent and citizen-friendly. Announcing the decisions taken at the 57th meet

The GST Council's decision to allow input tax credit on employee group health and life insurance is expected to reduce coverage costs for employers, particularly MSMEs

The FM said the Council has also taken steps to make the movement of goods smoother by limiting inspections, detention and seizure to officers of the supplier or destination state

The council has removed the power to arrest under GST. It also raised the threshold for prosecution from ₹1 crore to ₹5 crore

The GST Council is expected to consider simpler compliance, faster refunds and changes to prosecution and arrest rules, with no major rate changes likely at the meeting

Ahead of the GST Council meeting, IT-ITES industry body Nasscom has flagged two outstanding issues on services exports -- the treatment of services supplied through branches abroad, and R&D done in India on prototypes provided by overseas customers. Nasscom Vice President and Head of Public Policy Ashish Aggarwal, in a statement, said that Indian service exporters often serve overseas customers through branches abroad, and added that the way a company organises its overseas presence should not, by itself, decide whether a service supplied from India is treated as an export. "Clarity on this would support competitiveness, release working capital and reduce the litigation the industry has faced over the years," Aggarwal said. The Goods and Services Tax (GST) Council is scheduled to meet on October 8. According to Nasscom, another issue arises when an Indian team carries out R&D, engineering or testing on a prototype or sample that an overseas customer provides in India. "The ...

From India-US trade negotiations and Maharashtra's drought to GST simplification and public-capital governance, today's pieces examine policy trade-offs and institutional capacity

Move aims to address a key administrative problem faced by large businesses with operations spread across multiple locations

Proposed changes seek to widen the definition of services exports, ease rules around overseas branches and allow faster GST refunds through a risk-based mechanism

Tomorrow's GST Council meeting may be less exciting, but no less important than the last one

Allowing employers to claim ITC on GST paid on group health and life insurance could lower effective costs, address a tax disparity and encourage wider employee coverage