The Internet and Mobile Association of India says proposed changes to registration, refunds and enforcement could make India’s tax regime more predictable, but calls for input tax credit on insurance bought for gig workers.
The Internet and Mobile Association of India has welcomed the GST Council’s latest proposals to simplify compliance, cut disputes and tone down enforcement under the tax system, saying the changes could make the business environment more predictable for companies operating in India. The group said the planned removal of GST officers’ arrest powers would help curb coercive enforcement and strengthen trust between businesses and tax authorities, while the proposed rise in the prosecution threshold from ₹1 crore to ₹5 crore would be a step in the right direction, although it argued there is still room to go further.
The association’s response comes after the 57th GST Council meeting in New Delhi, where members backed a broad package of process reforms aimed at easing the administrative burden on taxpayers. According to reports on the Council’s decisions, the package includes measures to streamline registration, speed up refunds, reduce litigation and rationalise penalties, without altering GST rates. Livemint reported that the government is also looking to avoid frequent rate changes and to make registration and filing simpler for smaller businesses.
IAMAI said the proposed simplification of GST registration for e-commerce sellers could help more small firms enter the digital marketplace, while faster input tax credit refunds, supported by greater automation and shorter processing timelines, could improve cash flows and ease working capital pressure. Business coverage of the Council’s plans has also highlighted moves to tighten timelines for refunds and make the claims process more efficient, with the aim of helping exporters, manufacturers and other businesses that depend on prompt tax credits.
The association also praised the Council’s move to allow input tax credit on employee health insurance costs paid by employers. It said that benefit should be extended to aggregators that voluntarily buy insurance for gig workers, arguing that similar tax treatment would avoid unfair differences and encourage wider coverage. IAMAI also urged policymakers to keep GST treatment consistent between online and offline services, citing examples such as non-air-conditioned bus bookings and ed-tech offerings.
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