GST reforms bring relief to industry ahead of Diwali: EY expert

The GST Council's recent reforms are expected to provide significant relief to businesses, according to EY partner Bipin Sapra. The changes address input tax credit blockages and expand refund mechanisms, which should ease cash flow constraints for many firms.

Sapra highlighted that rationalising Section 17(5) could reduce tax cascading and lower operating costs for businesses across sectors. The reforms also include measures to support exporters and streamline tax administration processes.

Additionally, the decriminalisation of certain GST violations and removal of arrest powers are intended to create a more conducive business environment. Sapra described the package as bringing "Diwali early" for industry, suggesting these changes will have an immediate positive impact on business sentiment and operations.