GST Council Meeting October 8: Centre Plans Simpler GST Rules, Faster Refunds; Ecom Delivery Charges in Focus

The GST Council is set to meet on October 8 for its 57th meeting, with the Centre preparing a package of reforms aimed at easing compliance, speeding up refunds and simplifying the Goods and Services Tax system for businesses. The proposals are expected to focus on procedural and administrative changes rather than another round of GST rate revisions.

GST Council Meeting October 8: Centre Plans Simpler GST Rules, Faster Refunds

People familiar with the discussions in the Finance Ministry said rate changes are unlikely to be part of the agenda. This means issues such as the levy of GST on Merchant Discount Rate (MDR) related to UPI transactions are also unlikely to come up at the meeting. Instead, the government is looking at changes that can reduce paperwork, disputes and delays for taxpayers.

The proposed package covers five broad areas - process reforms, structural changes, ease of living and doing business, services exports and e-commerce. The focus is on making GST processes more automated and reducing the need for manual intervention, particularly for smaller businesses that may not have large accounting and compliance teams.

A key proposal under consideration is an overhaul of the invoice management process to address frequent mismatches between buyer and seller records. Businesses often receive notices when invoices, returns or Input Tax Credit claims do not match, even when the difference is caused by delayed filing, amendments or corrections by suppliers.

Under the proposed system, corrections made by sellers could be captured and reflected more systematically in the buyer's records. This is expected to reduce routine mismatch notices and make reconciliation easier for businesses and tax officials. For taxpayers, fewer such notices could also mean lower costs related to reconciliations, professional fees and follow-ups with suppliers.

GST Input Tax Credit Rules: Businesses May Get Relief From Supplier Filing Delays

Input Tax Credit is another major area likely to feature in the proposed reforms. Businesses can claim eligible credit for GST paid on inputs, but buyers can face difficulties when suppliers delay filing their returns or fail to report invoices correctly.

GST ITC Relief, Faster Refunds: Centre Plans To Cut Compliance Burden For Businesses

Reportedly, the Centre is examining ways to make the ITC process less restrictive and reduce the burden on buyers for issues arising from supplier-side compliance. The objective is to ensure that genuine businesses do not face prolonged uncertainty over credit claims because of routine reporting delays or corrections.

The package is also expected to include measures for faster GST refunds. Greater automation in verification and processing could help reduce delays and limit manual intervention, particularly in cases where the taxpayer's records can be matched with information already available with the tax authorities.

E-Commerce Delivery Charges, Swiggy-Zomato Tax Relief In Focus

On the e-commerce front, the GST Council could consider measures affecting delivery charges levied by online platforms. According to a report by NDTV Profit, a possible reduction in the tax burden on delivery charges charged by e-commerce and food-delivery platforms such as Swiggy and Zomato is among the proposals under consideration. The report also said targeted exemptions or tax relief measures covering sectors including healthcare, defence, shipping and agriculture could come up for discussion.

The proposals, if approved, would represent a shift in the GST reform agenda from tax-rate changes to improving the functioning of the existing system. For small businesses in particular, fewer notices, simpler ITC procedures, faster refunds and reduced paperwork could lower the day-to-day cost of GST compliance.

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