Archive · 9 Oct 2026
GST 2.0 Proposals Aim to Ease Compliance for Businesses
Lanka Dinakar praised a set of proposed changes to India’s GST rules.
The recommendations came from the 57th GST Council meeting.
They are intended to make tax rules easier for businesses to follow.
The proposals would reduce some penalties and raise the amount at which prosecution could begin.
They would also set a minimum amount for GST show-cause notices.
Faster refunds and simpler registration for some small online sellers are also proposed.
Dinakar said the changes could help small businesses, startups and traders.
He added that clear rules and good digital systems will be needed to put the changes into practice.
Lanka Dinakar welcomed recommendations from the 57th GST Council meeting as taxpayer-friendly reforms.
Proposals include removing arrest provisions under the CGST Act and raising the prosecution threshold from ₹1 crore to ₹5 crore.
The maximum general penalty would fall from ₹25,000 to ₹10,000, and a ₹10,000 minimum threshold for show-cause notices is proposed.
Other recommendations include faster technology-driven refunds, improved input tax credit provisions and safeguards against arbitrary transit inspections.
Dinakar said the reforms’ success would depend on legislative amendments, digital systems and clear administrative guidelines.
- Who
- Lanka Dinakar, chairman of the Twenty Points Programme (Viksit Bharat–Swarna Andhra Pradesh) implementation and BJP national council member.
- What
- Dinakar welcomed taxpayer-focused recommendations from the 57th GST Council meeting.
- When
- At the time of the 57th GST Council meeting; no date is stated.
- Where
- The article does not specify a location.
- Why
- Dinakar said the proposed changes could reduce litigation, improve transparency and make compliance and business operations easier.
- Council meeting
- 57th GST Council meeting
- Prosecution threshold
- Proposed increase from ₹1 crore to ₹5 crore
- Maximum general penalty
- Proposed reduction from ₹25,000 to ₹10,000
- Show-cause notice threshold
- Proposed minimum of ₹10,000
- Other proposed measures
- Technology-driven refunds, improved input tax credit provisions, transit-inspection safeguards and simpler registration for eligible small e-commerce suppliers
- Implementation
- Dinakar said legislative amendments, digital systems and clear administrative guidelines would be important.