New Delhi, October 8 (Daily Kiran) : The PHD Chamber of Commerce and Industry (PHDCCI) has expressed its approval of the decisions made during the 57th meeting of the GST Council held on Thursday. The organization noted that rather than altering tax slabs, the Council focused on simplifying the GST system to make it more business-friendly, particularly benefiting the MSME sector.
PHDCCI stated that the decisions taken during the meeting would reduce the compliance burden on businesses and alleviate taxpayers’ fears of unnecessary actions. However, the chamber also highlighted that several critical issues raised by the business and industry sectors remain unresolved and urged the Council to address these promptly.
The chamber described the 57th meeting of the GST Council as a significant step towards a trust-based tax system. Measures such as the removal of arrest powers, increasing the prosecution threshold to ₹5 crore, and reducing punitive provisions send a clear message that honest taxpayers should not be treated like criminals.
Additionally, PHDCCI welcomed the decision to streamline and expedite the refund process. Under the new guidelines, the deadline for accepting refund claims has been shortened from 15 days to 10 days. Furthermore, the system will automatically approve 90% of refund claims based on risk assessments. The payment period for refund orders has also been reduced to three working days.
The chamber believes these changes will enhance the availability of working capital for industries, especially exporters.
Moreover, the GST Council has expanded the scope of Input Tax Credit (ITC) to include health and life insurance services for employees, telecommunications towers, and pipelines located outside factory premises. Conditions have also been set for allowing ITC on free samples and stock written off due to expiration.
PHDCCI asserted that these decisions would promote ease of doing business, improve liquidity for industries, and simplify compliance processes. However, the organization noted that several pending issues, including the protection of bona fide buyers, still require resolution. The chamber urged the GST Council to consider these concerns swiftly to further enhance transparency and business-friendliness in the tax system.
According to PHDCCI, the recent decisions by the GST Council could prove to be a positive step towards boosting investment, industry, and economic activities in the country.
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