GST Council Seeks to Slash Refund Period to 17 Days

Key Highlights

Read More: Global Food Prices Hit 4-Year High Amid Disruptions and Weather Concerns

The GST Council, which convenes on Thursdays, is set to implement a new system aimed at streamlining the refund process and reducing the time required for registering businesses.

According to Sameer Gupta, who leads the EY India tax practice, the new system will allow businesses to claim credit for taxes paid during the entire process, even if some entities in the chain have not complied. The system also links the invoice matching process with the mapping of input and output ledgers.

Providing a more comprehensive view of the transactions.

For small businesses that operate in multiple states, the GST Council is considering measures to enable them to avoid the registration exercise across states if an e-commerce platform has a recognised warehouse as a place of business. This move is expected to benefit nine out of 10 sellers on platforms.

Also Read: ITAT Scraps Rs 11.35 Lakh Tax on Buyer, Rules in Favour of Homebuyer

The government is also keen to allow input tax credit on insurance, use of vehicles, and other services. This move is aimed at providing businesses with greater flexibility and reducing the administrative burden.

The new system is designed to provide protection against fake credit and ensure that businesses comply with tax laws. It is expected to have a positive impact on the overall efficiency of the GST regime and provide greater certainty for businesses operating in the country.

The GST Council's efforts to streamline the refund process and reduce the time required for registering businesses are seen as a significant step towards improving the overall efficiency of the GST regime. With the new system expected to be operational soon, businesses are likely to benefit from the increased efficiency and reduced administrative burden.