The 57th meeting of GST Council on Thursday approved major reforms aimed at simplifying GST compliance, reducing disputes and providing relief to businesses and consumers. The council meeting was chaired by Union Finance Minister Nirmala Sitharaman.
Among the key decisions approved by the council includes the scrapping of the arrest powers of GST officers. This marks a significant shift towards a more trust-based tax administration. The Council has also raised the threshold for launching criminal prosecution under GST from Rs 1 crore to Rs 5 crore.
The GST Council has also approved a reduction in GST on certain delivery services from 18 per cent to 5 percent, including services provided by unregistered delivery riders to platforms. This decision is likely to provide relief to delivery riders and potentially reducing the tax burden associated with online deliveries.
The Council also focused on expanding the scope of Input Tax Credit (ITC). Among the measures approved or cleared as part of the reform package are ITC-related relief for sectors including telecom sector.
Now, Telecom tower companies are set to benefit from changes allowing them to claim ITC on eligible expenses. Companies that purchase insurance policies for its employees could also receive ITC benefits, subject to the applicable conditions.
The Council also decided to consider ITC relief for outdoor catering and for pipelines installed outside factory premises. FMCG and pharmaceutical companies are expected to receive relief relating to ITC on expired or damaged products.
The council also reduced the GST on used tyres for tractors to 5 percent thereby providing relief to agricultural and farm-equipment sector. In its meeting, the Council also approved faster transfer of GST refund mechanism. With this, the refund applications are expected to be acknowledged within 10 days, while eligible refunds could be processed within around 17 days.
Nakshab Khan is a senior journalist with nearly two decades of experience in Indian media. Beginning his career in 2007, he has worked with leading news organisations, including Times Now, News18, TV9 Network, IANS, Zee Media, UNI TV. He is currently associated with NewsX Digital as a Deputy Editor.
Over the years, Nakshab has extensively covered politics, international affairs, crime, and public policy. He has special interest in global affairs, with a strong focus on West Asian affairs. He can be reached at nakshab.ali@gmail.com.
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