Policy● Neutral for Indian equities
Reforms on the cards: GST Council likely to shun mid-year rate changes
The brief
- GST rates may be reviewed once a year, with any changes taking effect from April 1
- Predictable GST changes would help Indian companies plan pricing, inventories and compliance
- Gold imports by nominated agencies may come under GST as Council weighs tax parity
- Silicon Valley companies discuss simpler GST, customs rules with CBIC
- 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
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
- Reforms on the cards: GST Council likely to shun mid-year rate changes