New Delhi, October 8 (Daily Kiran) : The 57th meeting of the GST Council held in New Delhi has unveiled several significant reforms aimed at benefiting medium, small, and micro enterprises (MSMEs). Experts have noted that these changes are designed to simplify processes for businesses across the country.
Ajay Rotti, an expert in the field, highlighted that the meeting focused on various improvements, including a proposal to raise the litigation threshold from ₹1 crore to ₹5 crore. Additionally, the Council discussed clarifications regarding goods and services, expedited refund processes, and expanded eligibility for refunds, all of which are expected to enhance working capital for businesses.
Rotti also mentioned that the registration process has been streamlined, which will further facilitate ease of doing business in India.
One noteworthy recommendation is the removal of the authority for tax officers to make arrests. Rotti explained that tax laws already have provisions for litigation. Any fraudulent activities will now be addressed under the BNS framework, eliminating the dual power of both police and tax officers to make arrests.
The GST Council’s meeting emphasized easing business operations by revoking the arrest powers of tax officials. Finance Minister Nirmala Sitharaman announced that the litigation limit has been significantly increased to ₹5 crore.
Following the meeting, Sitharaman held a press conference, stating that the government had previously reduced GST rates last year and is now focusing on simplifying processes. She confirmed that the GST Council has approved automatic permissions for general changes in registration. Refunds will be processed more quickly, with the approval timeframe reduced from 15 to 10 days, and 90% of refunds will be issued within three working days.
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