Policy▲ Bullish for Indian equities
GST Council may shield genuine buyers from ITC loss due to supplier tax defaults
The brief
- The GST Council may protect genuine buyers from input tax credit loss when suppliers default on tax
- The proposed framework would direct recovery towards defaulting suppliers, while retaining action against buyers knowingly involved in fraud
- The proposal could reduce compliance risk for Indian businesses that claim input tax credits
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- ARCs seek govt help to speed up recovery
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- NCLT President pitches raising insolvency threshold to Rs 5-10 crore
Proposed GST compliance reforms
The GST Council may consider compliance changes offering relief to small e-commerce sellers, including allowing them to operate nationwide. Proposals also aim to protect genuine buyers from losing input tax credit because of suppliers’ tax defaults, while retaining action against buyers involved in fraud.
Monday, 5 October
- GST Council may shield genuine buyers from ITC loss due to supplier tax defaults