New Delhi, Oct 8: The 57th GST Council meeting, chaired by Union Finance Minister Nirmala Sitharaman, began on Thursday with a focus on the next phase of GST reforms aimed at making the tax system simpler, faster and more business-friendly.
The meeting is being attended by several Chief Ministers, Deputy Chief Ministers, State and Union Territory Finance Ministers and senior officials, along with senior representatives of the Ministry of Finance and the Central Board of Indirect Taxes and Customs (CBIC).
The proposed reforms are focused on improving taxpayer services, speeding up refunds, simplifying GST registration and creating a more trust-based tax administration.
Faster GST Refunds
One of the key proposals is to make the refund process quicker and more automated.
Under the proposed system, refund applications could be acknowledged within 10 days, with around 90 per cent of eligible refunds released after a risk-based check.
Relevant information would be collected automatically from customs and banking systems, reducing paperwork and making the process easier for businesses.
Simpler Litigation Process
The reforms also seek to bring greater consistency to GST-related litigation.
A common framework for notices, hearings and orders is being considered, while cases involving amounts below a specified threshold could be kept outside the notice process.
The objective is to reduce unnecessary litigation and allow tax authorities to focus on cases that require closer examination.
Easier Return Filing and Invoice Matching
The GST return filing process could also become more streamlined.
Under the proposed system, changes made while filing returns would be properly recorded, creating a clear trail of corrections. Corresponding changes would also be reflected automatically in the buyer’s ledger.
The proposed invoice-matching mechanism would help validate input tax credit at the time of recording itself. This could reduce mismatches and, in turn, lower the number of notices issued to taxpayers.
Faster and Easier Registration
GST registration is another area being targeted for improvement.
At present, around 61 per cent of taxpayers receive registration within three working days without officer intervention. The process for other taxpayers is proposed to be streamlined to reduce unnecessary queries and avoid avoidable rejections.
The broader aim is to make starting a business easier while ensuring that technology and available data are used effectively.
Easier Closure and Restoration of Registration
The reforms also seek to make closing a business as simple as starting one.
In cases where GST registration is suspended because of a procedural lapse, the registration could be restored automatically once the taxpayer addresses the issue, without requiring additional intervention from an officer.
Moving Towards a Trust-Based GST System
The proposed changes are part of a broader effort to make GST administration more technology-driven and taxpayer-friendly.
The underlying principle is to allow the GST system to handle tasks that can be completed through available data and automation, while tax officers focus on matters that require human judgement.
The next phase of GST reforms is therefore aimed at reducing compliance burdens, improving transparency and making the tax system more efficient for businesses and taxpayers.