Policy▲ Bullish for Indian equities
Proposed GST changes aim to make India's services exports more competitive
The brief
- Proposed GST changes would widen the definition of services exports
- Proposals include easing rules for overseas branches and faster risk-based GST refunds
- Easier GST treatment could benefit Indian IT and other services exporters
- GST Council may set different timelines for services, capital goods refunds
- Industrial alcohol is the GST Council's unfinished federal business: States won the legal fight, but the 18% GST still applies
- Towards a flawless GST
- GST Council may allow export tag for overseas contract manufacturing
- GST Council meeting postponed again, rescheduled to October 8
Proposed GST enforcement and compliance reforms
Proposals for GST reforms include removing officials’ direct arrest powers, setting a ₹5 crore prosecution threshold, and replacing arrests with fines in some cases. Other suggested changes include faster risk-based refunds, wider input tax credit and a broader definition of services exports; the Council is due to consider reforms on October 7.
Tuesday, 6 October
Monday, 5 October
- Proposed GST changes aim to make India's services exports more competitive