9 hrs ago
AP Chambers Welcomes GST Reforms, Seeks Further Rate Rationalisation
AP Chambers is a business group that welcomed proposed changes to India’s GST rules.
Its president, Potluri Bhaskara Rao, said the changes could make tax paperwork and penalties easier for businesses, especially smaller ones.
The proposals would remove arrest provisions and raise the amount involved before prosecution can begin.
They would also lower the general penalty and set a threshold for issuing show-cause notices.
Faster refunds could help businesses have money available sooner.
More business expenses and situations could qualify for input tax credit.
Rao also wants GST rates reviewed in several industries, including food processing, hospitality, textiles and garments.
He said changes could help fruit processors and farmers, reduce waste, and support investment and jobs.
He also called for lower GST on some business-related fees.
AP Chambers welcomed recommendations from the 57th GST Council meeting, saying they could simplify compliance and ease business burdens, especially for MSMEs.
Proposals include removing arrest provisions, raising the prosecution threshold from ₹1 crore to ₹5 crore, and reducing the general penalty from ₹25,000 to ₹10,000.
A proposed ₹10,000 threshold for show-cause notices and faster refund measures—including provisional payment of 90% of eligible claims—were welcomed.
The proposals would expand input tax credit and include refunds of accumulated ITC on input services from November 1, 2026, and capital goods from April 1, 2027.
President Potluri Bhaskara Rao called for rate changes in food processing, fruit-pulp beverages, hospitality, textiles and garments, and lower GST on exhibition participation and industry association fees.
- Who
- Andhra Pradesh Chambers of Commerce and Industry Federation (AP Chambers) and its president, Potluri Bhaskara Rao.
- What
- AP Chambers welcomed proposed GST reforms and called for further rate rationalisation in several sectors.
- Where
- Vijayawada, Andhra Pradesh, India.
- When
- After recommendations at the 57th GST Council meeting; the articles do not specify the meeting date.
- Why
- AP Chambers says the proposals could ease compliance, penalties and cash-flow pressures, and argues that further rate changes could support businesses, farmers, investment, tourism and employment.
AP Chambers’ position
Current GST arrangements
GST rates in selected sectors
AP Chambers’ position
Rao urged rate rationalisation in food processing, fruit/pulp-based beverages, hospitality, textiles and garments, saying changes could support industry, farmers, tourism and employment.
Current GST arrangements
The articles describe the existing tax structure and rates but do not include a response from the GST Council or another party defending them.
Fruit-pulp-based beverages
AP Chambers’ position
Rao said current GST treatment gives insufficient advantage to fruit/pulp-based carbonated beverages compared with chemically formulated alternatives, affecting processors and growers.
Current GST arrangements
No opposing response or explanation of the current rate treatment is provided in the articles.
Key facts
- Organisation
- Andhra Pradesh Chambers of Commerce and Industry Federation (AP Chambers)
- GST Council meeting
- 57th meeting
- Prosecution threshold
- Proposed increase from ₹1 crore to ₹5 crore
- General penalty
- Proposed reduction from ₹25,000 to ₹10,000
- Provisional refunds
- Provisional sanction of 90% of eligible refund claims
- Accumulated ITC refund dates
- Input services from November 1, 2026; capital goods from April 1, 2027
- Sectors cited for rate rationalisation
- Food processing, fruit/pulp-based beverages, hospitality, textiles and garments
Sources
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