Archive · 7 Oct 2026
GST Council Weighs Major Compliance Relief for Businesses
India’s GST Council is looking at ways to make tax rules easier for businesses.
The ideas are proposals and have not been confirmed as approved changes.
Online sellers might not need a separate GST registration in every state.
The tax on goods delivery services could fall from 18% to 5%.
Businesses might also be able to claim tax credits for more kinds of expenses.
A buyer’s refund could be protected if their supplier does not file a return.
Some traders could get refunds faster, and the Council may change rules about arrests and tax-evasion cases.
The proposals aim to reduce paperwork and disputes without making major changes to headline GST rates.
The GST Council is considering changes to registration, returns, refunds and input tax credit rules, with no major headline rate changes proposed.
Proposals could remove the need for e-commerce companies to register separately in every state and cut GST on goods delivery services from 18% to 5%.
Businesses may gain wider input tax credit access, including for some employee insurance, vehicles, plant and machinery, and damaged or expired goods.
Proposed refund changes would prevent a buyer’s refund from being held up solely because a supplier failed to file a return; trader refunds could be approved within 10 days and paid within 17 days.
Other proposals include changing arrest safeguards, raising the prosecution threshold for tax evasion from Rs 1 crore to Rs 5 crore, and easing or removing some offences.
- Who
- The GST Council is considering proposals affecting businesses, e-commerce companies, traders, exporters and buyers.
- What
- A proposed overhaul would simplify GST compliance and change rules on registration, delivery services, input tax credits, refunds and enforcement.
- When
- The article does not specify when the proposals will be considered or decided.
- Where
- India.
- Why
- The proposals aim to reduce compliance hurdles, losses and disputes for businesses.
Proposed compliance relief
Current rules and enforcement
Supplier filing and buyer refunds
Proposed compliance relief
The proposal would prevent a buyer’s refund from being held up solely because the supplier failed to file a return.
Current rules and enforcement
Under the current situation described in the article, buyers can face refund difficulties when suppliers do not file returns.
Arrests and prosecution
Proposed compliance relief
Proposals would require enforcement-officer approval before an arrest and raise the prosecution threshold for tax evasion to Rs 5 crore.
Current rules and enforcement
The article says the current prosecution threshold is Rs 1 crore and describes existing arrest powers as a subject of proposed change.
- Status
- The measures are proposals under consideration; the article does not say they have been approved.
- Headline GST rates
- No major changes are proposed.
- Goods delivery GST
- A proposed reduction from 18% to 5%.
- Trader refund timeline
- Approval within 10 days and payment within 17 days are proposed.
- Tax-evasion prosecution threshold
- A proposed increase from Rs 1 crore to Rs 5 crore.
- Offences
- Proposals seek relief in 24 offences and complete removal of nine offences.