GST 2.0 set to amplify ease, unlock tax credit
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓India is planning a major overhaul of the GST system to ease compliance and unlock input tax credit.
- ✓The GST Council will discuss these changes on Wednesday.
- ✓Bipin Sapra said, "Unlocking blocked input tax credit under Section 17(5) can lower costs across industry and make Indian goods and services more competitive globally."
Story at a Glance
- Category
- BUSINESS
- Reported By
- Economic Times
- Reading Speed
- 5 Minute(s)
- Market Focus
- India Economy
India is set to implement significant reforms to the goods and services tax system, which will ease compliance. Changes may include the release of accumulated input tax credit that benefits various industries and supports growth. The GST Council plans to reconsider tax treatment for certain supplier defaults to protect genuine buyers.
New Delhi: India is eyeing a broad overhaul of the goods and services tax (GST) regime that could free up thousands of crores of accumulated input tax credit, ease compliance and raise thresholds for prosecution, with emphasis on decriminalisation.
A host of such proposals, which include rationalisation of provisions governing e-way bill requirements and removing powers to arrest under the GST law, will be taken up by the GST Council at its meeting on Wednesday. The proposals span all touchpoints for a taxpayer - from registration, returns and refunds to input tax credit and litigation - marking a shift from procedure-heavy compliance towards automated, data-driven and risk-based administration, people familiar with the matter told ET.
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Economic Times
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