India’s tax authorities are considering wide-ranging changes to Goods and Services Tax administration, including tighter limits on arrest powers, higher prosecution thresholds, faster refunds and fewer manual checks.
India’s tax authorities are preparing a broad easing of Goods and Services Tax compliance, with plans that could curb arrest powers, lift prosecution thresholds, speed up refunds and cut back on manual intervention, CBIC chairman Vivek Chaturvedi told industry representatives in Hyderabad on Thursday.
Chaturvedi, speaking alongside CBIC member for GST Sanjay Mangal, said the ideas stemmed from recommendations made at the 57th GST Council meeting. According to the Deccan Chronicle, the meeting with about 250 taxpayers and business groups brought together micro, small and medium enterprises, large manufacturers, service providers, traders, exporters, start-ups, e-commerce operators and chambers of commerce to seek views on the next phase of reform.
The chairman said the tax system should work as a partner to genuine businesses rather than as an obstacle, and outlined a shift towards automated, system-led refunds and fewer manual touchpoints. He also said vehicle checks should be limited to cases backed by specific intelligence and carried out only in the originating and destination states, with authorisation from an officer of at least Joint Commissioner rank.
Industry participants welcomed the direction of travel, saying the changes could strengthen a trust-based approach to compliance and ease pressure on working capital. In a separate account, the New Indian Express said the broader overhaul discussed by Chaturvedi also includes curbing small-value notices and preserving revenue collection even as enforcement becomes less intrusive.
Later in the day, Chaturvedi and Mangal addressed CBIC officers and stressed the need for a tax administration that is transparent, predictable and less frictional. The discussion also touched on the possibility of centralised GST administration for taxpayers under the Central government’s jurisdiction, with the officials inviting further suggestions from business on how the reforms should be implemented.
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