GST Council Meet: ITC, Faster Refunds and Arrest Powers Take Centre Stage
The 57th GST Council meeting is focusing on compliance reforms, including input tax credit, faster refunds, registration, return filing and safeguards around GST officers' arrest powers.
The 57th GST Council meeting, chaired by Finance Minister Nirmala Sitharaman in New Delhi, is focusing on the next phase of GST reforms, with procedural simplification and compliance relief taking priority over another sweeping rate overhaul.
Among the key proposals under discussion are changes to input tax credit (ITC), faster refunds, GST registration, return filing and dispute resolution. The Council is also considering safeguards around the arrest powers of GST officers, including a possible increase in the threshold for launching criminal prosecution from Rs 1 crore to Rs 5 crore.
Businesses and industry groups are seeking clearer ITC rules, particularly to protect genuine taxpayers from losing eligible credits because of supplier defaults. Faster refunds are another major demand, as delays can lock up working capital and complicate investment and project planning.
The real estate sector has sought greater clarity on ITC, development rights, joint development agreements and related transactions, while manufacturers have highlighted the need to reduce tax-related working-capital pressures.
Proposals also include simplifying compliance for smaller businesses and e-commerce sellers, improving registration processes and making dispute resolution more predictable.
The broader message from industry is fairly simple: after years of GST rate debates, businesses now want the machinery underneath the tax system to work more smoothly. In other words, fewer notices, quicker refunds and clearer rules may be more valuable than another round of headline-making rate changes.
