Indore GST Experts Welcome Council's Proposals for Faster Refunds and Easier Compliance
The 57th meeting of the GST Council, concluded in Delhi on Thursday, has proposed measures expected to ease business operations for taxpayers. The Council recommended direct refunds without official intervention in many cases while retaining scrutiny for high-risk transactions. City GST experts reviewed these decisions at a meeting organised by the Tax Practitioners Association and the Indore branch of the Institute of Chartered Accountants of India.
Key proposals include reduction of the general penalty under Section 125 from ₹50,000 to ₹20,000, removal of certain discretionary arrest powers of officials, and raising the criminal prosecution threshold from ₹1 crore to ₹5 crore. The Council also recommended tax refunds on capital goods for exporters and refunds on capital goods and services under the inverted duty structure, aimed at improving working capital availability.
Experts highlighted that the proposed direct refund system would ensure timely processing and streamline business procedures. Tax Practitioners Association president welcomed the relief concerning arrest and prosecution provisions, stating it would reduce fear and promote a simplified, trust-based tax regime.
