Archive · 8 Oct 2026
GST Council to Prioritize Process Reforms Over Rate Changes
The GST Council is expected to meet on October 8 to discuss how to make the tax system easier to use.
It is not expected to make broad changes to GST rates.
The proposals include helping eligible businesses keep tax credits when a supplier farther up the chain fails to meet its obligations.
Some refunds could be processed faster, with more steps handled automatically.
The Council may also consider simpler rules for exporters and small businesses selling online.
Another proposal would make prosecution harder to start and require a judge's approval before a taxpayer can be arrested.
Some states reportedly oppose removing officers' arrest powers.
If the Council approves reforms, they are expected to be introduced in stages through 2027.
The 57th GST Council meeting is expected to focus on procedural reforms, with no broad GST rate changes planned.
Proposals include protecting eligible buyers' input tax credits when suppliers default and widening credits and refund eligibility.
The Council is expected to consider faster, more automated refunds and further automation of GST registrations and amendments.
Proposed enforcement changes include raising the prosecution threshold from Rs 1 crore to Rs 5 crore and requiring judicial authorisation for arrests.
Measures for exporters and small e-commerce sellers are also under consideration; approved changes are expected to be phased in through 2027.
- Who
- The 57th GST Council, considering proposals prepared through its Law Committee and Fitment Committee after consultations with states.
- What
- A package of GST process and enforcement reforms, with broad rate changes not expected.
- When
- The meeting is scheduled for October 8; approved changes are expected to be implemented in phases through 2027.
- Where
- India.
- Why
- The proposals aim to simplify compliance, reduce administrative burdens and improve certainty and ease of doing business.
Supporters of enforcement changes
Opponents of removing arrest powers
GST officers' power to arrest
Supporters of enforcement changes
The proposal would require judicial authorisation for arrests; supporters of a less punitive approach say enforcement should rely more on financial penalties and recovery.
Opponents of removing arrest powers
The article reports that two states oppose giving up the arrest provision; it does not specify their reasons.
- Meeting
- 57th GST Council meeting, scheduled for October 8
- Rate outlook
- No broad rate changes are expected; limited rationalisation and clarification issues may be considered.
- Refund proposal
- Claims currently take about 25 days on average; proposals include acknowledgement within 10 days and release of 90% of eligible refunds after a risk check.
- Registration automation
- About 61% of registrations are already approved within three working days without officer intervention.
- Amendment automation
- Around 66% of amendment applications are proposed to be processed automatically.
- Prosecution threshold
- A proposal would raise the threshold from Rs 1 crore to Rs 5 crore.
- Implementation
- Approved changes are expected to be implemented in phases through 2027.
