GST Council scraps tax officers' arrest powers, eases refund rules
The GST Council has announced a major procedural overhaul of India's tax system, including the removal of arrest powers for tax officers and the simplification of refund processes. These changes aim to create a more trust-based, efficient, and transparent tax administration.
Why it matters
This reform represents a significant shift in India's business environment, potentially reducing compliance burdens and legal risks for companies operating in the country.
NEW DELHI: Nine years after the biggest indirect reform in the country, GST Council on Friday decided on a massive procedural overhaul that will rework the way businesses operate, enable them to get refunds and credit for taxes paid, allow for movement of trucks with fewer stoppages and do away with officers' arrest powers.From registration and returns to refunds decriminalisation the second part of GST2.0 was completed with the elements to be rolled out from April, allowing for amendments to the law and for the systems to be revamped.Amid the unanimity at the all-powerful body led by finance minister Nirmala Sitharaman, there were two subjects on which decisions were deferred.First, the proposal to only stop input tax credit (ITC) for entities that have collected tax, but not deposited it, while allowing it for others in the chain to claim credit was referred to a panel of officers.The committee has been…
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