The Prime Minister said this while referring to the article by Finance Minister Nirmala Sitharaman, in which she has presented the outline of the next phase of GST reforms. PM Modi said the new generation GST reforms are making the tax system more simple, transparent and predictable, benefiting both businesses and households.
The Finance Minister said on social media platform 'X' that the Next-Gen GST is simultaneously achieving both the goals of providing relief to taxpayers and giving impetus to the economy. He said that the main focus of the upcoming reforms will be to simplify the processes of registration, return filing, refund, dispute resolution and input tax credit (ITC).
Sitharaman, in her article ahead of the GST Council meeting on October 7, said the proposed process reforms are aimed at reducing the time and cost of compliance for taxpayers. The government wants the business class to get less paperwork and more facilities.
The Finance Minister also mentioned the performance of GST collections and taxable supplies after the rate rationalization process that came into effect in September 2025. The government believes that GST has played an important role in strengthening revenue collection as well as promoting economic activities.
Meanwhile, an important legal issue may also be discussed in the upcoming GST Council meeting. According to sources, the Council may consider whether or not to remove the provision present in the GST law, under which tax officials have the right to arrest taxpayers during investigation.
This suggestion has been made by the Law Committee of the GST Council as part of broader proposals for decriminalization of GST laws. The Committee believes that in many cases, default in tax payment is not willful and in such cases, drastic measures like arrest may not be required.
Under the present system, the Commissioner has the power under Section 69 of the CGST Act to permit arrest if he has reason to believe that a person has committed a serious offense under Section 132.
However, the proposed thinking is that in serious cases like fake invoices, fake input tax credit and fake refund claims, action can be taken under ordinary criminal laws including the Indian Justice Code (BNS). This can make the business environment more comfortable for honest taxpayers.
The Law Committee of the GST Council includes officials from the Center and the states. This committee conducts a legal review of the GST laws and recommends necessary amendments and clarifications to the Council.