GST Council Considers Major Compliance Overhaul for Businesses

The GST Council is considering sweeping changes to simplify rules around registration, returns, refunds and input tax credit claims. No major change in headline tax rates is proposed, but multiple measures aim to reduce compliance burdens and disputes.

Key proposals include removing the requirement for e-commerce firms to obtain separate GST registrations in each state, reducing GST on goods delivery services to 5 per cent from 18 per cent, and waiving late fees and penalties. Exporters and Global Capability Centres could also receive relief, while input tax credit scope may widen for employee insurance, vehicles, plant and machinery costs.

Another significant change would prevent buyers' refunds from being blocked if suppliers fail to file returns. The Council may also allow ITC claims on damaged or expired goods and expedite refund timelines for traders.