GST Council May Replace Arrest Provisions With Fines Under GST 2.0 Reforms
· Business · Hindustan Times, The Hindu
The Goods and Services Tax Council is considering sweeping compliance reforms in its upcoming meeting to complete the GST 2.0 overhaul, including a proposal to remove arrest provisions for alleged tax defaulters. Officials familiar with the matter stated that advanced data analytics and instant invoice matching have replaced the necessity of arrests for detecting tax evasion. The proposed reforms may allow taxpayers to directly correct sales statements, introduce a single annual return for small consumer businesses, and streamline registration with a three-day deadline. Additionally, data analytics could automatically approve 90% of low-risk refund claims without requiring physical paperwork. The second phase of reforms follows last year's rate rationalisation, which consolidated slabs into 5% and 18% rates.
Why it matters
Eliminating arrest provisions and automating refund approvals would significantly ease compliance burdens and reduce legal harassment for businesses across India.
Read the original report — Hindustan Times
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