New Delhi, October 5 (Daily Kiran) : Prime Minister Narendra Modi stated on October 5 that the next phase of Goods and Services Tax (GST) reforms will simplify compliance for businesses and streamline the refund process. He emphasized that these changes will enhance industry confidence, encourage investment, and provide a solid foundation for the goal of a “developed India.”
Modi’s comments came in response to Finance Minister Nirmala Sitharaman‘s recent article outlining the next steps for GST reforms. He noted that the new generation of GST reforms aims to make the system more straightforward, transparent, and predictable, benefiting both businesses and families.
Sitharaman highlighted on social media platform X that the next-gen GST is designed to relieve taxpayers while simultaneously boosting the economy. She explained that the upcoming reforms will focus on simplifying processes related to registration, return filing, refunds, dispute resolution, and Input Tax Credit (ITC).
Ahead of the GST Council meeting scheduled for October 7, Sitharaman stated that the proposed procedural reforms aim to reduce the time and costs associated with taxpayer compliance. The government seeks to minimize paperwork and enhance convenience for the business community.
She also referenced the performance of GST collections and taxable supplies following the rate rationalization process implemented in September 2025. The government believes that GST has played a crucial role in strengthening revenue collection and promoting economic activities.
Additionally, the upcoming GST Council meeting may address a significant legal issue. Sources indicate that the council might consider whether to remove provisions in the GST law that grant tax officials the authority to arrest taxpayers during investigations.
This suggestion is part of broader proposals by the GST Council’s Law Committee aimed at decriminalizing certain aspects of GST laws. The committee argues that in many cases, failures to pay taxes are not deliberate, and harsh measures like arrest may not be necessary.
Under the current system, Section 69 of the CGST Act allows the commissioner to authorize arrests if they believe an individual has committed a serious offense under Section 132. However, the proposed approach suggests that serious cases, such as fake invoices and fraudulent refund claims, could be addressed under general criminal laws, including the Indian Penal Code (IPC). This could create a more conducive business environment for honest taxpayers.
The GST Council’s Law Committee includes officials from both the central and state governments. This committee conducts a legal review of GST laws and recommends necessary amendments and clarifications to the council.
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