As trade talks with US stall, India eyes compliance reset

Quicker GST refunds, easier PLI claims procedures under consideration to boost investments

- Dhirendra Kumar

The government is working on a plan to substantially ease compliance burdens and eliminate policy bottlenecks as well as procedural hurdles to attract investments, after India's talks for a trade deal with the US stalled over the latter's demand for greater market access to the politically-sensitive agriculture and dairy sectors.

The government has asked 37 of its ministries to submit a detailed report on the key compliance requirements that are creating roadblocks for manufacturers, exporters, investors and small enterprises, hurting their ability to conduct their businesses smoothly, three government officials directly involved in the ongoing consultations said on the condition of anonymity.

One of the key areas under discussion to boost domestic manufacturing base is reforming the GST (goods and services tax) reimbursement mechanism on the lines of the income tax refund, where an assessee gets refunds soon after the verification of their returns in an automatic, seamless manner, the first of the three officials cited earlier said.