GST Council is expected to consider GST 2.0 reforms focused on faster registration and refunds, smoother input tax credit, and reduced litigation. The proposals also include deemed acknowledgement, reduced enforcement discretion and decriminalisation of certain GST provisions.
The GST Council is expected to consider a comprehensive package of procedural reforms aimed at simplifying GST compliance, accelerating registrations and refunds, improving input tax credit processes, and reducing unnecessary litigation.
The proposed GST 2.0 reforms have emerged from multiple rounds of consultations between the Centre and state governments. Key measures under consideration include faster processing of registration and refund applications, clearer treatment of certain services, greater use of technology to reduce administrative discretion, and safeguards against unnecessary stoppage of goods in transit.
A deemed acknowledgement mechanism is also proposed, under which GST registration and refund applications would require a response within a stipulated 10-day period. The reforms are intended to provide greater certainty and reduce procedural delays, particularly for smaller businesses.
Another significant proposal concerns decriminalisation of certain GST-related provisions, including changes to the existing arrest-related framework. The objective is to place greater emphasis on compliance and adjudication while reducing the scope for excessive enforcement action.
The Council is expected to focus on process and compliance reforms rather than GST rate changes in this round. The proposed framework may also move toward making GST-related changes on an annual cycle, with revised provisions taking effect from April 1. CASansaar